ACCC report confirms Cairns motorists are being ripped off at the pump

The Australian Competition and Consumer Commission’s (ACCC) report into the Cairns petrol market has found that over the past five years, motorists have been paying 11 cents per litre more for petrol compared with Australia’s five largest cities.

Minister for Energy and Biofuels Mark Bailey said the ACCC found what we’ve all suspected, Cairns motorists have been getting ripped off.

“Following its Fuel Price Summit in March 2016, the Palaszczuk Government asked the ACCC to undertake this investigation, to shine a light on Queensland petrol prices, especially in Cairns where historically prices have been significantly higher than similar areas in Australia,” Mr Bailey said.

“I welcome the ACCC report into the Cairns petrol market but not the impact on motorists – clearly this is unacceptable.

“The Palaszczuk Government is particularly concerned that the ACCC found current retail profits in Cairns are very high and that in 2015–16, the average net profit per site in Cairns was 38 percent higher than the average net profit per site across Australia due to the lack of vigorous and effective competition.

“The fuel retail market is national and any proposed compulsory ‘fuel check’ scheme recommended by the ACCC should be assessed at a national level for consistency and to avoid ad-hoc regulation and unintended consequences – including additional costs that might be passed on to Queenslanders. 

“The ACCC has not provided any clear evidence that the compulsory scheme has lowered prices for motorists in New South Wales and I understand implementation of the scheme has been problematic. 

“This problem is not unique to Queensland as previous ACCC reports have highlighted. The main retailers operate in a national market and I will be writing to the Federal Treasurer to see what the Turnbull Government intends to do now to take national action.

“The ACCC has extensive powers, and is best placed to regulate these matters consistently, on a national basis.

“I am pleased the ACCC will also be taking a more detailed look into the Brisbane petrol market following our requests, and I look forward to the ACCC’s report in coming months.”

Mr Bailey said the Palaszczuk Government was currently reviewing feedback on proposed new Queensland laws to ban misleading petrol price boards that display conditionally discounted prices requiring a voucher or in-store purchase.

“The LNP had three years and a record majority to act on fuel price boards and they did nothing,” he said.

Treasurer and Member for Mulgrave Curtis Pitt said the ACCC’s report identified what locals had long known.

“I don’t think any locals will be surprised by the findings of this report but it’s good to have confirmation of what we all suspected,” Mr Pitt said.

“The Palaszczuk Government is committed to advocating for Queensland motorists and we are already delivering on our biofuels mandate.

“This is playing a key role in Queensland’s transition to a clean energy economy which will also create new jobs. 

“Because E10 can be produced more cheaply than regular unleaded, by supporting its uptake in Queensland the Palaszczuk Government is creating competition for the big oil companies which will disrupt their control of the market. 

“By supporting the use of biofuels we have an opportunity to drive jobs growth in regional Queensland and add value to the State’s abundant agricultural resources such as sugar cane.”

ENDS

Media contacts:

Zoe Russell (Minister Bailey) - 0428 079 640

Scott Forbes (Treasurer) - 0419 945 546