Caltex says NRMA analysis fundamentally
September 04, 2007
Caltex told the Australian Competition and Consumer Commission
today that claims made by the NRMA about petrol prices and Tapis
crude oil were fundamentally flawed.
"Australian petrol prices are based on the price of petrol from
Singapore refineries, the source of most of Australia's petrol
imports," Caltex Managing Director and CEO Des King told in the
ACCC inquiry into petrol pricing in Sydney. "Petrol prices are not
based on the price of crude oil.
"In the 65 day period recently referred to by the NRMA after the
ACCC inquiry was announced, pump prices for petrol in Sydney were
on average 4 cents per litre (cpl) lower than in the same period
prior to announcement of the inquiry (see table below).
"Over the same periods, the Singapore refinery price of petrol was
also on average 4 cpl lower. The fall in pump prices was the
same as the fall in Singapore refinery prices.
"Over the same periods, the change in Tapis crude oil prices was
about zero. The fall in pump prices was not related to crude oil
"The reason Australian petroleum product prices follow Singapore
refinery prices is about 25 per cent of Australia's petroleum
products are imported and Australian refineries must compete with
these imports. 18 per cent of Australia's petrol
imported in 2006."
Caltex is surprised that the NRMA has drawn mistaken conclusions
about petrol pricing based on changes in crude oil prices.
Caltex and numerous other commentators have consistently explained
to motorists that petrol prices typically follow Singapore refinery
prices with a lag of one to two weeks. The lag may be longer in
some country areas.
References: Informed Sources,
65 days prior to announcement of ACCC
| Sydney average pump price Acpl
| Singapore refinery price Acpl
| Tapis crude Acpl
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