Following record-high LPG prices ahead of the Northern Hemisphere winter late last year, pump prices have been slow to return to ‘normal’ as the northern winter comes to an end.
The RACV’s Michael Case said subsequent cuts to the wholesale price are yet to be passed on in full to Victorian LPG customers.
“RACV’s analysis shows that in Melbourne, LPG pump prices have dropped from 89.9 cents per litre in December to an average of 82.4 cents per litre on Monday,” Mr Case said.
“When we factor in the amount the commodity price has dropped and the historical margin, RACV believes the pump price should be about 75 cents per litre.”
Mr Case said the 7.5 cents per litre difference could not be explained, and that the Australian Competition And Consumer Commission (ACCC) should investigate.
“This type of pricing behaviour needs to be investigated by the ACCC, as it is not only costing motorists but is also threatening to undermine the LPG industry,” Mr Case said.
“With looming changes to the LPG conversion incentive scheme, these high prices are threatening jobs as motorists turn away from LPG due to the cost. We’ve already seen the high prices have an impact on the taxi industry and other businesses.”
The price discrepancy is further amplified in regional Victoria, where the RACV says prices are up to 11.3 cents per litre higher than they should be.
In Sydney, LPG prices have barely moved since the December highs, currently hovering around 89.9 cents per litre with many sites still asking for more than 92 cents per litre.