Record petrol prices a 'rip-off'

August 10, 2005 - 3:20PM

Greedy retailers are to blame for record petrol prices across Victoria overnight, says the state's motoring body.

"Any petrol station charging (almost $1.24) is ripping off motorists because they can't justify that retail margin," RACV government and corporate relations manager David Cumming said today.

The price of unleaded petrol hit a record high of almost a $1.24 a litre at many Melbourne service stations overnight, with even higher prices in country areas.

"Basically petrol prices are at a very unacceptable level," Mr Cumming said.

He called on motorists to take a stand against high petrol prices and urged the federal government to remove the GST from the petrol excise it already charges.

This would immediately reduce the price of unleaded petrol by 3.4 cents per litre, he said.

"It's a tax on a tax," Mr Cumming said.

"I've spoken to (Victorian Treasurer) John Brumby and to (Prime Minister) John Howard about it, but without the entire population behind me, getting angry, there's not much more I can do," he said.

"It requires all the states to agree to change the format of the GST but the federal government hasn't even written to all the states to ask what they should do about it.

"They are making a fortune out of the GST but no-one is prepared to make a stand.

"Make a protest. Don't fill up (at service stations with inflated prices)."

Mobil Oil Australia spokesman Alan Bailey said that beyond setting a wholesale price, his company had little to do with the price charged at its service stations, most of which were independently owned.

"Any service station owner has to look at their buy price, what their costs are and what they need to charge to cover their costs, and that is a decision for independent business people to make," he said.

Shell Australia spokeswoman Edwina Pribyl warned motorists to watch price cycles in their region and time their fuel purchases to meet the low in the cycle.

"Obviously we are sympathetic to consumers at this time, when fuel prices are hitting the hip pockets of everyone," Ms Pribyl said.

"It's a cyclical market and... people should watch for the prices to come down."

Mr Cumming said some retailers had dropped their prices slightly today but not enough to entice motorists to fill up, Mr Cumming said.

"I would expect it to settle at a lower level, about $1.20 a litre, over the next couple of days, but that's still scaring off a lot of people," he said.

