The ACT Government has finally launched an enquiry into Canberra’s petrol prices after they continued to soar following the removal of excise duty. Photo: File.
Why Canberra motorists pay more for petrol than drivers just across the border and how much retailers are making from each litre. These are a few questions that will be put under the microscope as the ACT’s latest fuel inquiry gets underway.
The Legislative Assembly’s Standing Committee on Economics, Industry and Recreation will examine current retail margins, terminal-gate prices and the difference between fuel prices in Canberra and surrounding markets.
It will also look back at the problems identified by the Independent Competition and Regulatory Commission (ICRC) and a previous Assembly inquiry in 2019 to determine whether they still exist seven years later.
At the heart of the inquiry will be another question: did the changes made after the last investigation actually work?
Measures introduced following the 2019 inquiry included greater monitoring of fuel prices and competition and the extension of the NSW FuelCheck scheme to the ACT.
The committee will examine whether those measures have been effective and whether existing systems are good enough to detect and respond when Canberra fuel prices move unusually.
That will include examining the role of the ICRC and whether existing fair trading laws and other regulatory arrangements are doing enough.
The inquiry comes as the latest Australian Competition and Consumer Commission data again put Canberra fuel prices in the spotlight.
On 16 September, Canberra recorded the highest average petrol price of Australia’s eight capital cities, after prices jumped 17.3 cents a litre in a week, the largest increase of any capital.
The latest investigation follows a push by Opposition Leader Mark Parton during the recent Assembly sitting week, which won support from Labor, Greens and independent MLAs.
It is not the first attempt to understand why Canberra motorists can pay more.
A select committee established in 2019 examined the structure of the ACT fuel market, differences between Canberra and surrounding communities and possible regulatory responses.
Its five recommendations included closer monitoring of fuel prices and competition, attracting more independent operators, introducing real-time price monitoring and examining service station operating costs.
Speaking at the assembly, Planning and Sustainable Development Minister Chris Steel said Labor supported another committee inquiry but rejected suggestions the government had failed to act on those recommendations.
He said all ACT fuel retailers now participated in NSW FuelCheck, while the Treasury continued to monitor prices using FuelCheck, ACCC data and other market information.
But Mr Steel said previous investigations had identified competition within Canberra’s fuel market as an underlying issue.
Earlier ICRC findings linked Canberra’s higher average retail margins to a more concentrated market, fewer aggressive discount retailers and a greater proportion of retailers operating premium business models.
The new inquiry will now test whether those conditions remain and whether seven years of monitoring and other changes have made a meaningful difference.
The committee is chaired by Labor MLA Taimus Werner-Gibbings, with independent MLA Fiona Carrick as deputy chair. Liberal MLA Elizabeth Lee, independent MLA Thomas Emerson and Greens MLA Rebecca Vassarotti are also members.
Submissions are now open until 5 pm, 16 November, giving motorists, retailers, industry groups and other interested parties an opportunity to tell the committee what they believe is driving Canberra’s fuel prices.
