Petrol inquiry led to price plummet: data

The announcement in June by Australian Treasurer Peter Costello that the ACCC would investigate the actions of the nation's oil giants has led to a windfall of cheaper petrol prices for motorists.

NRMA Motoring & Services President, Alan Evans will present data to the ACCC inquiry today, which shows an uncharacteristic drop in prices in the weeks following the Treasurer's announcement when compared to the Malaysian Tapis price.

Oil companies have consistently pointed to the Malaysian Tapis price as justification for high petrol prices in Australia.

In the 65 days prior to the inquiry being announced the comparative prices at the pump and Malaysian Tapis were 129.0 cents per litre/56.9 cents per litre. Average prices in the 65 days following the announcement were 122.8/57.4 respectively.

Mr Evans said it appeared the only time motorists would get a fair deal out of the oil giants was when they were under the ACCC microscope.

"The Treasurer hauls the oil companies before the ACCC and suddenly families get cheaper petrol prices - that's why there's such skepticism about petrol prices in Australia," Mr Evans said.

"On average, prices have dropped by seven cents since the Treasurer announced the inquiry on June 15 while average pries of Malaysian Tapis have increased."

The data shows that on 7 June, one week before the Treasurer's announcement, the average price of unleaded petrol in Sydney was 138.8 cents per litre (the highest in seven months) while the Malaysian Tapis price was 56.4 cents per litre.

By contrast, on 19 August the average price of unleaded was 118.3 cents per litre while the average prices of Malaysian Tapis was 60.1 cents per litre. While the price of Tapis went up, the price of petrol remarkably dropped.

"The oil companies can no longer hide their profits behind Malaysian Tapis," Mr Evans said.

"Mr Evans will be giving evidence to the ACCC inquiry today.

A graph showing price differences before and after the inquiry announcement is attached.

COMPARISON OF UNLEADED AND MALAYSIAN TAPIS - 1 FEBRUARY TO 19 AUGUST 2007