Post-strike petrol hikes ‘completely unjustifiable’
The country’s largest automotive group says drivers are being unnecessarily crushed at the gas pump as servos take advantage of the Iran crisis.
The NRMA said on Wednesday afternoon regular unleaded fuel was 219.9c/litre at half of Melbourne petrol stations and at least 217.9c/L at half of Sydney stations.
The average price in Brisbane (210.2c/L) was also well above the expected price for the peak of the price cycle.
“Oil companies are using the Middle East crisis as an excuse to increase their margins,” NRMA spokesman Peter Khoury said in a statement. he said.
“This must stop immediately.”
Oil companies were contacted for comment.
On Tuesday, Mr. Khoury said it usually takes at least a week for overseas prices to be reflected in the local market, while noting that wholesale prices increased by 4 cents/L for gasoline and 3 cents/L for diesel.
Iran has closed the Strait of Hormuz, through which about one-fifth of the world’s oil supply passes, threatening to set fire to any ship that tries to use that route.
The consumer watchdog has been tasked with monitoring local fuel prices, while the country’s largest oil refining companies have vowed not to raise prices unnecessarily.
Energy Minister Chris Bowen met with the bosses of Australia’s refining companies on Tuesday and said he had great confidence they would not engage in unnecessary or unfair profiteering.
Cabinet colleague Madeline King dismissed concerns about fuel supplies on Wednesday.
“The Strait of Hormuz is really important for global trade,” the resources minister told reporters.
“Overall we have concerns because there is an ongoing conflict, but more importantly, we are confident in our fuel supply at this stage.”
A significant minority of petrol stations in Sydney and Melbourne still offered fuel for under $1.90, including Reservoir, where drivers lined up to get diesel and petrol for under $1.80.
The NRMA said Adelaide and Perth oil markets remained low, with the average price remaining below $1.90.
