Weeks-long wait for some for fuel price relief
Families hoping to make it through Easter are unlikely to be able to get cheaper gas before the long weekend, and locals could wait weeks for help.
The federal government lowered wholesale fuel prices by 26 cents per liter in an effort to stave off the worst economic effects of the Middle East war.
But NRMA spokesman Peter Khoury told AAP the change would not be felt immediately as service stations must sell off all their old, high-taxed stock before introducing cheaper fuel.
This process will likely take from a day or two for high-turnover metro stations to two or more weeks for some regional areas, he said.
“When they buy new fuel, they will apply the discount at that point,” Mr. Khoury said.
Finance Minister Jim Chalmers said the consumer watchdog will be watching closely to ensure service stations pass on price cuts to consumers.
However, he reiterated that the change would not come into effect immediately.
“I want to manage expectations on that front because people shouldn’t be swinging at five minutes past midnight… and expect to see all the benefit transferred through,” he told reporters on Tuesday.
Allan Fels, the former boss of the Australian Competition and Consumer Commission, said while there was no law against price gouging, public shaming could be a powerful tool to force fuel companies to do the right thing.
“The ACCC has no direct authority to set maximum prices nor to impose penalties on companies for overpricing or price gouging,” he told AAP.
“However, the ACCC may publicly criticize someone who does not pass on this benefit.”
Professor Fels said the watchdog should also keep a close eye on the “rocket and feather” effect on fuel prices.
“When costs rise, prices rise like a rocket. When costs fall, prices slowly fall to the ground like a feather,” he said.
States and territories are considering further changes that would see them give up some of their GST revenue due to higher fuel prices, but the reforms appear to be deadlocked as jurisdictions cannot agree on the best path forward.
While some states want to directly benefit drivers by reducing the 10 per cent GST on petrol and diesel, others want to keep the rate as is but use the increased revenue to fund a large cost-of-living payment.
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