The ACCC will be monitoring the petrol prices after the Australian government announced a six-month reduction in fuel excise.
The flat fuel tax has been reduced by 22 cents per litre, roughly half of the previous 44.2 cents per litre cost consumers faced.
“We expect that fuel retailers will pass on the cut in fuel excise to reduce the price at the bowser as soon as possible, as existing petrol stock levels are used up,” ACCC Chair Gina Cass-Gottlieb said.
The ACCC is working to monitor prices for the next six months, determining how retailers will pass the excise reduction to consumers.
“We will contact petrol retailers to set out our clear expectations that the savings are passed on to consumers and advise them that we will be monitoring their margins. We will also continue to inform consumers of retailer behaviour.
“If retailers make false or misleading statements to consumers that they have passed on the savings when they have not, the ACCC will not hesitate to take appropriate enforcement action,” Ms Cass-Gottlieb said.
The excise reduction has faced criticism with the Australian Automotive Association (AAA) stating “the change may possibly offer some short-term relief for motorists in a volatile global fuel market, but believes it generates more medium-term challenges than it solves.”
The AAA considers the decision to be a “booby-trap” as it will neither fix Australia’s transport tax problems or the factors leading to the increased petrol prices.