Regulation urgently needed as fuel retail margins surge again
Brisbane fuel retailers charged motorists more than double the retail margins compared to other capital cities, according to the ACCC’s latest quarterly fuel price report.
The December 2024 quarter report adds to the mounting evidence in support of RACQ’s calls for State Government intervention to regulate Brisbane’s failing fuel market.
The data showed that while average fuel prices decreased in Brisbane in the December quarter, fuel company gross retail margins* increased.
Brisbane’s gross retail margins were the highest of all capital cities at 24.1 cents per litre (cpl), 14.5cpl higher than in Perth which averaged 9.6cpl.
The report also revealed that while retail margins in some capital cities declined over the last five years, in Brisbane they continued to rise.
RACQ Economist and Affordability Specialist Dr Ian Jeffreys said the latest ACCC report is further evidence that Brisbane’s fuel market is not working in the best interest of drivers.
“There is absolutely no reason why drivers in Brisbane should be paying so much more to fill up their cars compared to drivers in other capital cities,” Dr Jeffreys said.
“This is why we’re calling for the State Government to regulate the market and impose a five-cent daily cap on fuel price increases to bring an end to dramatic and unjustified margins.”
The ACCC’s report also found Brisbane had the second longest fuel price cycle in the country, lasting six weeks, compared to a weekly cycle in Perth and a cycle that lasts two and a half weeks in Adelaide.
Dr Jeffreys explained this means Brisbane motorists had far fewer chances to fill up during the cheap phase of the cycle.
“In Perth, drivers have 52 opportunities every year to fill up when prices are low,” Dr Jeffreys said.
“In Brisbane, drivers only have around eight opportunities a year and with a six-week cycle, it’s impossible for to wait for the next cheap phase before filling up.”
RACQ will continue to engage with the State Government to advocate for fairer fuel prices for Queenslanders.
Table 1. Fuel price cycle lengths
|
City |
Length |
|
Perth |
1 week |
|
Adelaide |
2.5 weeks |
|
Sydney |
5.5 weeks |
|
Brisbane |
6 weeks |
|
Melbourne |
7.5 weeks |
Table 2. ACCC reported December quarter 2024 Gross Retail Margins (in cpl)
|
|
Sydney |
Melbourne |
Brisbane |
Adelaide |
Perth |
|
December quarter 2024 |
20.7 |
18.3 |
24.1 |
13.1 |
9.6 |
Table 3. ACCC reported average annual Gross Retail Margins (in cpl)
|
|
Sydney |
Melbourne |
Brisbane |
Adelaide |
Perth |
|
2019 annual average** |
10.2 |
13 |
14.5 |
13.7 |
11.3 |
|
2019 (inflation adjusted to 2024 $)*** |
12 |
15.3 |
17.1 |
16.1 |
13.3 |
|
2024 annual average**** |
19.1 |
18.5 |
23.3 |
10.8 |
10 |
|
Change |
7.1 |
3.2 |
6.2 |
-5.3 |
-3.3 |
*The ACCC measures Gross Retail Margins as GIRD (Gross Indicative Retail Difference).
**Source: ACCC 2019 December Quarter Report
***RACQ calculations based on inflation data
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