Australian motorists are being ripped off with petrol prices falling nowhere near as much as the oil industry’s self-declared benchmark – the Singapore Mogas –according to data released by NRMA.

In a statement released in September, NRMA claimed prices across the nation should be around seven cents per litre cheaper.

NRMA said in the last two months the price of Singapore Mogas had dropped 26 per cent, yet Australian motorists were denied a similar reduction in price with local prices only dropping by seven per cent.

Despite falling crude prices, a competitive Australian dollar and alleviated fears about the impact of the hurricane season on the United States’ oil production, Sydney motorists were paying an average of $1.50 cents per litre for petrol.

Even after taking in consideration the declining Australian dollar petrol prices were still at least seven cents per litre too high.

"The Petrol Commissioner resigns, the Australian Government says it’s doing all it can and all the while Australian families continue to suffer at the hands of an oil industry that snubs its nose at everyone," NRMA President Alan Evans said.

"Every time prices sky-rocket in Australia the oil companies tell us it’s because that’s the price in Singapore – they’re lying.

"The oil companies' old 'blame Singapore' line is a myth.

"Singapore Mogas is a different type of petrol, made from a different type of crude oil, sold to a different fleet and bought with a different currency.

"Motorists have had a gutful – the oil companies are treating us like fools and the Australian Government seems unwilling or unable to stand up to them."

Mr Evans said the Government’s current recruitment for a new Petrol Commissioner should be accompanied by an extension of powers for the new Commissioner.

"If a new Commissioner is appointed without sharper teeth then the Government can expect to be looking for a third Petrol Commissioner in no time flat."

Mr Evans said the NRMA would also continue its fight for fairer prices in regional areas after receiving a less-than-satisfactory response from the former Petrol Commissioner to NRMA concerns over price differences between the city and country.

In a letter to the NRMA, former Petrol Commissioner Pat Walker said price differences last month of as high as 12 cents per litre were the result of less competition in regional areas.

The NRMA believes country motorists should be paying at most three to five cents per litre more than city motorists.

Open Road e-zine October 2008

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