Proof that petrol stations are colluding to rip us off

A new study has revealed that petrol stations are colluding to rip us off.

Proof that petrol stations are colluding to rip us off

Australians are paying premium prices for petrol because petrol stations have been working together to rip us off, says a study into fuel prices.

The study, Learning to Coordinate: A Study in Retail Gasoline, jointly conducted by The University of Melbourne and The University of Sydney, analysed 1.7 million petrol prices over 15 years.

It revealed that petrol stations have indeed been colluding to rip us off, boosting prices by 15 to 20 cents per litre on a Thursday, then decreasing prices by two cents per day until the next price rise.

Research revealed that some motorists could be paying up to $135 per year extra if they didn’t fill up on the cheapest day of the week.

University of Melbourne’s Dr David Byrne said that researchers noticed the price-boosting strategy in 2010.

“They were achieving price co-ordination, and making higher profit margins, without speaking (to each other) at all,” he said.

“We found a gradual, slow process where each station started to adhere to the pricing norms. Over time, we started to see margins rise over the entire cycle.

“This tacit collusion softened price competition, resulting in higher profits for all firms involved, and higher prices for consumers.”

The study, undertaken in Perth, was the first of its kind. It noticed that petrol profit margins increased by 700 per cent between 2010 and 2015.

This research underlines the importance for Australian drivers to closely monitor petrol prices to avoid being ripped off at the bowser.

“People need to pay attention to the prices, that’s the one thing you can do,” said Dr Byrne. “Get engaged in the petrol apps like Fuel Watch.”

Do you know which is the cheapest day to fill up your fuel tank?

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    COMMENTS

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    Rae
    15th Feb 2017
    11:35am
    The local Coles Fuel Station has had diesel at $136.99 for almost two years now and the overpaid still just do the shopping and rock in there to fill up.

    Must be earning a heap of money is all I can say about those happy to pay top dollar.

    I drive 15 minutes away and fill up for $122.90 at an Independent.
    East of Toowoomba
    15th Feb 2017
    11:45am
    I live in a country town about 40ks from a large regional centre and the fuel prices here are fairly steady and seldom go up or down. It's quite often cheaper to fill up here than it is in the large town.
    4b2
    15th Feb 2017
    12:00pm
    Wow this is news to us all. If the report has facts to substantiate these claims of collusion why hasn't the ACCC taken action?
    Another useless organisation set up to not take action where there is no political advantage.

    Why is Australia the only country to have daily petrol price fluctuations?

    Don't we have only one or two companies refining oil and supplying the rest? The price of the fuel at the pump is the same no mater what the brand.
    Joy B
    16th Feb 2017
    10:58am
    I agree. I can drive 15 minutes in many directions from my house and find variances of up to 25 cents per litre. Not good enough.
    bike30
    19th Feb 2017
    9:49pm
    Sorry 4b2....but the oil companies have been this for years...what if all cars were left home and people found an alternative way to work, or only filled up once a month...the oil companies would find business would drop off, so the price would have to come down, to attract the customers back.......another thing...who in these companies is making big bucks, because it's pure greed.....
    btony
    15th Feb 2017
    12:05pm
    everyone in Australia has known this for years, everyone except the ACCC paper tiger
    Budwah
    15th Feb 2017
    12:19pm
    Even with the so called discount from Woolworths & Coles,Tasmanians are paying top price everyday - no price cycle down here.
    HDRider
    15th Feb 2017
    12:31pm
    The ACCC is only about job's for mates of Polititians, they are another NATO.
    You can use the cheap fuel outlets IF you trust there fuel, a friend did a mileage test, the cheap fuel did NOT take him as far as the BP etc.
    Me, I use the BP, get a double dose of Velocity points and know I have good fuel and a freebie in points.
    Cheapest day for fuel, no such thing, there is a most expensive day for fuel, here in Tas I reckon it would be Fri Sat and Sun, along with all holidays. Much like the price fixing IGA supermarkets who quite often have TWO supermarkets in ONE small town.....I believe we call it progress nowadays lmao
    HDRider
    15th Feb 2017
    12:31pm
    The ACCC is only about job's for mates of Polititians, they are another NATO.
    You can use the cheap fuel outlets IF you trust there fuel, a friend did a mileage test, the cheap fuel did NOT take him as far as the BP etc.
    Me, I use the BP, get a double dose of Velocity points and know I have good fuel and a freebie in points.
    Cheapest day for fuel, no such thing, there is a most expensive day for fuel, here in Tas I reckon it would be Fri Sat and Sun, along with all holidays. Much like the price fixing IGA supermarkets who quite often have TWO supermarkets in ONE small town.....I believe we call it progress nowadays lmao
    MjP
    15th Feb 2017
    1:35pm
    In Canberra prices haven't varied on a weekly basis for over 6 years, we just get ripped off all the time. On a recent trip to Sydney the average price for unleaded was 117.9 in Canberra it was 141.7.
    Anonymous
    15th Feb 2017
    7:06pm
    you get paid a lot more in Canberra

    full of over paid public servants living off the taxpayer

    so you pay a couple of extra bucks for a full tank - hard to feel sorry
    SuziJ
    16th Feb 2017
    10:34am
    It's not just Canberra that has the massive prices. Here in Albury/Lavington, our prices have hit the 148.9 cpl at the 'Big' stations recently. They have come down quite a bit, but still are 15-20 cpl dearer than the independents.
    Anonymous
    17th Feb 2017
    9:25am
    You obviously don't know much about Canberra. The Politicians and top public servants are the ones that have unnecessarily high income. but there are a large portion of people here that are on low to average wages example shop assistance's, cleaners . health care workers in retirement villages and many others . so before you go shooting off your mouth about high wages in the ACT may be you should look into the ordinary people in Canberra. Also the media needs to stop saying Canberra does this and that and say politicians are the ones that do this and that
    terrib
    15th Feb 2017
    4:56pm
    We used to get unleaded petrol cheaper in the Tweed area but since late last year it stopped coming down & now stays around the $1.38 mark. On the gold coast at some stations it reduces in the cycle but not in our area. Totally unfair
    MsM
    15th Feb 2017
    6:01pm
    Anyone know why the Northern Territory is not included in the Australian Fuel Price Watch please?
    I'm paying $1.54 a litre for pulp
    MICK
    15th Feb 2017
    6:38pm
    Surpise, surprise, surprise!!!!!
    You only have to look at the cost of crude over the past 15 years and compare it to bowser prices to understand that Australians are being done over and the government has turned another blind eye.
    Anonymous
    15th Feb 2017
    7:03pm
    historically petrol prices have always been lower when the liberal party is in power
    and thats largely due their economic policies
    Retired Knowall
    15th Feb 2017
    7:00pm
    I use the NRMA App and find the cheapest fuel in my area, sometime more than 20c/l cheaper.
    Anonymous
    15th Feb 2017
    7:45pm
    brilliant idea
    must get me one of those
    Oxleigh
    16th Feb 2017
    12:00am
    I have a letter from the ACCC which says the government gives them the power to keep and eye on all consumer pricing EXCEPT petrol and other fuels. They have been told to pull their heads in and not to watch petrol prices, I presume the gov has a vested interest in high prices and reap in extra GST on every litre sold.
    They are the same government who are trying to force people to use E10 poison, this is a great rip off, only a few cents difference in price but you have to use more fuel for any trip.
    The reason is its hydroscopic and if not used within a week of filling up the condensation is absorbed into the fuel and causes lots of unseen damage.
    A family member had a certain 2004 vehicle and the fuel companies said it could use E10, after about 3 months all sorts of problems started to happen, the fuel destroyed the fuel system and made the car unreliable. The car manufacturer said "do not use E10 in this vehicle.
    I advise everyone I know not to use this rubbish especially if you only drive very few k's.
    When I am getting fuel I also tell people at the pump when filling up about the crap they are about to put in their tank, Most of them say they are using more with e10 AND THEIR CARS DON'T GO AS GOOD, I ADVISE THEM TO USE A BIT MORE EXPENSIVE FUEL AND USE LESS AND THE CAR WILL DRIVE SMOOTHER.
    This has been proven by all my family. We must fight the price gouging and make the rip off government wake up.

    Fuel refineries are closing down and we must rely on Singapore fuel and guess who will pay through the nose as usual, we will be at the mercy of overseas prices again and again.
    It is the same with LPG, we sell so much of this overseas we do not have enough to supply the east coast of Australia, this means we have to buy it back at their prices, what a rip off.
    The government is getting a kick back from the manufacturer to push the compulsory sale of this rubbish, don't listen to greenies who say it will save the planet, it will only line the pockets of the rip off fuel companies and the govt.
    Use E10 at your peril, believe that the price fluctuation is normal at your peril.
    In the USA and Europe they would riot if the same was told to them, we have asked people all over the world and they think we should have a big public protest until we get a fair shake.
    Janran
    17th Feb 2017
    4:18pm
    I'm of a green colour, Oxleigh, but I wouldn't dream of putting that E10 rubbish in my car. It's never going to save the planet if you still end up burning the same amount of petroleum to get you from A to B.

    E10 is worse than a false economy, because you end up paying much more on vehicle maintenance. I use the 98 octane whenever I can. Over a long trip, it works out to cost the same as 95 octane, and then there's the motor maintenance savings on top of that.

    16th Feb 2017
    1:36am
    Surprise, surprise!
    SuziJ
    16th Feb 2017
    10:33am
    I live in Lavington (Albury) and have found that no matter where I go, the 'Big' fuel stations - Coles, Woolies, BP and Caltex are usually around 15-20 cpl dearer than the local independent station. Forget the 4 cpl discount, I would rather use the independent than fill the pockets of the 'Big' companies. Being on a pension this makes a huge difference with a 40 litre tank ($6 - 8).
    Nerk
    16th Feb 2017
    11:35am
    Until we get a member of parliament paying for their own fuel nothing will happen, the more we pay the more gst so it is their best interests to do nothing.
    Yer man
    16th Feb 2017
    12:34pm
    Sure is a rip off with no one keeping the petrol companies in check. The ACCC is a waste of space
    I refuse to buy groceries at Coles and will not use their filling stations. They and BP are the first to increase the price of petrol and the last to bring it down. Lord help us when BP take over Woollies stations. Hope 7/11 and the independents put the squeeze on them and we motorists do our bit.
    Crashbang
    16th Feb 2017
    1:33pm
    So where is the ACCC. they should be prosecuted!!!
    Old Geezer
    17th Feb 2017
    12:31pm
    There is a petrol app that will tell you the price of fuel near where you are. It is great for just finding servos when in an unfamiliar place.
    eggles01
    21st Feb 2017
    3:24pm
    at least some people get a drop in price,everybody seems to forget us down here in Canberra ,we have the inflated prices all day every day and that includes the lpg cost also
    eggles01
    21st Feb 2017
    3:34pm
    hi raphael,dissability pensioners and all disadvantage groups in Canberra do not get a bigger payment than those in every other state of Australia


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