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The ACCC recently released its report on the prices, costs and profits of unleaded petrol in Australia, which showed that while 2010-11 prices were around 8 cents per litre higher than in 2009-10 petrol prices in Australia remain among the lowest in the OECD.According to the ACCC's report, petrol price cycles continue to be of significant concern to consumers.The ACCC report found that petrol price cycles are not responses to changes in cost but are the result of the deliberate pricing policies of major fuel retailers.Australian consumers pay a price for petrol that is, on average, reflective of the relevant international benchmark prices. Although crude oil prices influence retail petrol prices, it is actually the international refined price of petrol that determines final pump prices.The ACCC has noted its concern at the continuing quotation of the West Texas Intermediate (WTI) oil price. Consumers may see a change in the price of 'oil' quoted in the media and expect it to be reflected in the retail price. However, the quoted price is often WTI which is not relevant to Australia and references to it can provide an inaccurate picture to the public. The ACCC considers that the more heavily traded Brent or Tapis benchmarks better reflect the price that Australian refiners pay for crude oil.
