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 prices.

"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 was 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.

	65 days prior to announcement of ACCC inquiry	65 days after announcement	Difference
Sydney average pump price Acpl	128.6	124.7	3.9
Singapore refinery price Acpl	66.2	62.3	3.9
Tapis crude Acpl	56.4	56.2	0.2

References: Informed Sources, Platts

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