Great festive fuel rip off may have started: RAC

12 December 2007

WA motorists have paid more than a million dollars too much for fuel over the past five days because of artificially high fuel prices and there are fears the trend could continue well into the festive season, WA's peak motoring body the RAC warned today.

The call comes nearly a year after the RAC lifted the lid on the festive price gouging habits of WA's fuel retailers who over charged motorists an extra $5million by doubling the profit margins in the lead up to Christmas last year.

David Moir, the RAC's Executive Manager for Member Advocacy said the signs were ominous with the retail profit margin, which normally averages at about three to four cents a litre, hitting 11 cents a litre for the first time since April 2003 three days ago.

Mr Moir said the profit margin usually trended up and down, but the RAC became concerned when that margin was excessive or it remained high for a long period of time.

"Motorists were taken for a ride last Christmas by fuel retailers and we want to make sure that doesn't happen again this year," said Mr Moir.

"People are already under a lot of cost pressures over the festive season and oil companies and fuel retailers should not be taking advantage of the holiday season to charge excessive profit margins on fuel."

Mr Moir said that with crude oil prices and refined product prices falling over the last three weeks and a weak American dollar, fuel prices should be 5 cents a litre lower than they currently are in Perth.

Deputy Prices Commissioner for Fuel Watch Aaron Rayner said retail prices were currently too high and expected retailers to continue to drop their prices to realign with international benchmarks.

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