Fuel price issues

None of us likes paying more than we think is a reasonable price for anything - but Economics 101 says the right price is the price the free market will bear. As much as I disagree with many aspects of our capitalist system, I don’t see why everyone whinges about petrol as if it were different in some way from other goods, at least where there is reasonable competition, that is, in cities.

The ACCC’s role is to ensure there is no collusion between different petrol companies (wholesale and retail), which would upset the market ideal.

The other problem is the tyranny of distance and Australia’s extremely low population densities in rural areas, which make retail viability difficult and competition impossible. In this instance, a previous commentator’s (@johnkerr) report on a regulated maximum price for petrol above city prices seems like a fair imposition to me.

1 Like