CONSUMER watchdog, the Australian Competition and Consumer Commission, announced this week Armidale would join remote cities Darwin in the Northern Territory, and Launceston in Tasmania, in a study of petrol prices launched last December by Small Business Minister Bruce Billson.
A long-running local campaign led to the move, which is part of an ACCC investigation into exorbitant fuel prices.
ACCC chairman Rod Sims said in Armidale, the average retail price of unleaded petrol was 144.7 cents a litre - 10.6c/l a litre higher than those in Sydney, Melbourne, Brisbane, Adelaide and Perth in 2014-15.
The monthly average difference reached a high of 19.3c/l in December 2014 and decreased to 2.4c/l in June 2015.
Mr Billson directed the ACCC to monitor the prices, costs, and profits relating to the supply of unleaded petrol and report at least quarterly for three years.
The detailed regional market studies, forcing service stations to supply information, aim to explain why prices are higher in some locations.
"Armidale petrol prices are among the highest in NSW," Mr Sims said.
"Furthermore, prices in Armidale have been noticeably higher than nearby cities in recent years."
According to the latest NRMA's Weekly Fuel Report, petrol cost 148.9c/L in Armidale for the week ending July 26 while Sydney recorded 131.5c/L that week.
The study is the second ACCC investigation into Armidale fuel prices, after Northern Tablelands MP Adam Marshall raised concerns, which were taken up at a federal level by the Nationals Senator for NSW John Williams.
In May, the ACCC gave Armidale fuel retailers the all-clear from allegations of price collusion.
The ACCC told Mr Marshall and Senator Williams at the time that until November 20 last year, one operator was responsible for determining the price for three sites which operate under one brand and another was responsible for pricing at two sites which operate under another brand.
The ACCC said it did not uncover evidence to suggest the comparatively higher price of fuel in Armidale is the result of collusion by retailers, but left the door open for Armidale to be included in the regional petrol market studies.
Mr Sims said the studies would endeavour to ensure transparency about the key drivers of regional petrol prices.
"They have the potential to empower regional communities and various levels of government with information and recommendations that assist their decision-making," he said.
"We may also uncover a breach of the Competition and Consumer Act that was not otherwise apparent."
Mr Marshall said this week he hoped the new study would benefit motorists.
"I sincerely hope the extra scrutiny that'll be placed on retailers as a result of this market study will see local motorists finally given a fair go at the bowser," he said.
"Armidale motorists have been ripped off at the bowser for far too long.
"Fuel is still much cheaper at every other centre in our region, even small outlets like Black Mountain, Invergowrie and Delungra."
The ACCC expects to report on the three studies by the end of this year, and promises to produce quarterly macro reports looking at petrol price movements and what drives them overall, as well as in-depth micro studies issues.
The ACCC is using its compulsory information-gathering powers under Section 95ZK of the Competition and Consumer Act 2010 to obtain information from companies throughout the supply chain in the Armidale fuel market.
"We acknowledge that using compulsory information gathering notices will have an effect upon those receiving them," Mr Sims said.
"However, we need to balance this against the need for information to understand pricing in the supply chain."
The ACCC is also interested in obtaining information from consumers, industry participants, stakeholders and any other interested parties regarding the petroleum industry in Armidale.
n Submissions can be made at consultation.accc.gov.au before October 31.
