Australian Competition and Consumer Commission warns petrol stations to pass on fuel excise cuts right away

The competition watchdog has warned fuel retailers they should fully pass on all excise cuts by the Federal Government “as quickly as possible”, while revealing that Perth motorists have so far benefited the least from the excise reduction. A deal between the states, territories and the Federal Government on Thursday shaves the fuel excise by 5.7 cents a litre, on top of an existing excise cut of 26.3¢/L. “Earlier this week we made it very clear to the major fuel companies that we expect to see them pass on the full cut in the fuel excise to consumers without delay,” Australian Competition and Consumer Commission chair Gina Cass-Gottlieb said. “We expect the same for the further cut in the excise under the proposal announced today, so that retail petrol and diesel prices should reduce initially by about 26.3¢/L and ultimately by 32¢/L, from what they would otherwise have been. “Fuel companies know that consumers expect them to pass on the excise cut with similar haste or risk losing customers.” Perth has benefited the least from the 26.3¢/L fuel excise cut that came into effect on Wednesday. For regular unleaded petrol, average prices reduced by between 7.2¢/L and 25.4¢/L, with the greatest reduction in Darwin and smallest reduction in Perth. For diesel, average prices reduced by between 9.1¢/L and 19.5¢/L, with the greatest reduction in Adelaide and the smallest in Perth. The ACCC on Thursday also served notices on “several businesses” operating across Western Australia, South Australia, Queensland and the Northern Territory requiring them to justify sizable “fuel surcharges” imposed on deliveries to remote areas. “We have seen an increase in complaints from consumers and small businesses about the introduction or increase of fuel surcharges, including surcharges of more than 70 per cent imposed on small businesses servicing remote communities,” Ms Cass-Gottlieb said. “Businesses are reminded that they need to make decisions about prices and levies independent of their competitors. Coordination of prices by competitors is a serious breach of competition laws.”