Peak consumer watchdog to “monitor” fuel prices following excise cut

The Australian Consumer and Competition Commission (ACCC) has vowed to “monitor” national fuel prices, following yesterday’s 50 per cent excise cut.

The cost of petrol and diesel has climbed to record highs in recent months, largely due to supply-chain complications, conflict in Europe, and cartel practices by international oil suppliers.

As part of last night's 2022 budget, treasurer Josh Frydenberg confirmed the government would slash tax on all fuel from 44c per litre to 22c per litre immediately to ease pricing.

With the Federal Opposition confirming it is “unlikely to stand in the way” of the move, the six-month scheme appears destined to go ahead.

However, there is currently no legislative provision mandating retailers pass savings – which should equate to nearly 10 per cent of the average price – onto consumers.

“Our petrol team will focus on this price monitoring work... to determine how retailers are passing through the excise reduction,” Gina Cass-Gottlieb – Chair of the peak watchdog – said in a media statement.

“We will contact petrol retailers to set out our clear expectations that the savings are passed on to consumers and advise them that we will be monitoring their margins… We will also continue to inform consumers of retailer behaviour.”

Approximalty 12 hours after the tax cuts went into effect, the average price of petrol had fallen just 0.5 per cent nationally. Diesel was down 0.9 per cent.

Retailers claim this is because excise has already been paid on existing stock, however industry analysts were quick to point out prices went up immediately following oil surges in February.

“If retailers make false or misleading statements to consumers that they have passed on the savings when they have not, the ACCC will not hesitate to take appropriate enforcement action,” Ms Cass-Gottlieb added.

While not explicitly stated in its most recent statement, Drive understands the department may also use its enforcement powers – including court action – to target retailers who chose to absorb the tax cut and and boost profits at the expense of consumers.

Drive has tracked the price of petrol and diesel in Australia day-by-day and state-by-state. You can view the most up to date figures by clicking here.