Motorists were slugged with the highest-priced petrol in more than a year during the December quarter, according to the latest Australian Competition and Consumer Commission petroleum industry report.
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The ninth quarterly report revealed a price 7.8 cent rise to $1.22 per litre in Australia's five largest cities, Sydney, Melbourne, Brisbane, Adelaide and Perth.
The average petrol price has shot up at the beginning of 2017 to $1.42 per litre in the ACT with average prices now hovering around $1.39 per litre.
ACCC Chairman Rod Sims said Canberra's petrol prices in Canberra were inflated and at times during the period were higher than the priciest of the five largest cities Brisbane.
"Canberra people are certainly paying more than they should. The price at the port in Sydney is $1.18, it is very hard to see how you get to nearly $1.40 in Canberra," he said.
"Whatever you think of transport costs and all the rest of it I am afraid the problem is the Canberra petrol scene is just not very competitive. There are not enough independent players that can bring that price down."
Gross retail margins (i.e. the difference between retail prices and wholesale prices) rose during the period from 0.9¢ per litre to 11.3 ¢ per litre as well.
Mr Sims was of the view both local market and international factors were at play pushing prices to such record highs.
As Organisation of the Petroleum Exporting Countries (OPEC) late November agreement to limit crude oil production, and subsequent agreement in December with 11 non-OPEC countries (including Russia) to further reduce production restricted supply and significantly impacted price.
"Cartel conduct leads to higher prices and economic harm and, in this case, it has meant higher prices at the pump for Australian motorists," Mr Sims said.
"There is no question the OPEC restrictions have cost Australian motorists around 10 c per litre. But It is both. I think it is fair to say Canberra prices, even allowing for that, are still too high and it is not clear how you can justify the prices we ae seeing in the Canberra market at the moment."
In the higher price environment the ACCC has encouraged motorists to shop around for cheap fuel and seen evidence of consumers utilising real-time apps to boost transparency and boost competition by rewarding the lowest price retailers with their patronage.
And data the commission collected showed usage of fuel comparison websites and apps increased from around 4 million hits in the December quarter 2015 to around 21 million hits in the December quarter 2016.
Canberrans can take a look at almost real-time prices via GasBuddy, PetrolSpy, ACT FuelWatch, the NRMA petrol app and more.
"They are even more important in a market like the ACT where you have got to give people more incentive to offer competitive prices," he said.
"Why put the price down if you are not going to get extra customers. Consumer are now more empowered and they can make a difference."
Prices had come down since a price spike in January but Mr Sims said they should be falling between 5 to 6 cents further.
"The increasing popularity of these websites and apps, and the ability of some to crowd source price data, is helping people play an active role in finding cheaper petrol prices and helping discounting petrol retailers broadcast their lower prices," Mr Sims said.
"The more people that use these websites and apps, the more powerful a role they can play in helping consumers get the lowest prices."
