ACCC to probe Queensland petrol pricing

The gap between Queensland city and country petrol prices has opened up by a further $6 a tank in just six months, the Australian Competition and Consumer Commission has found.

Toowoomba drivers were paying less than metro motorists in July. They are now paying 21.1¢ a litre extra. And the consumer watchdog intends to find out why, using "compulsory information-gathering powers" for the first time to find evidence of anti-competitive behaviour.

Research published yesterday by the ACCC proves drivers outside the mainland state capitals are being denied much of the 35¢-per-litre plunge in the wholesale cost of fuel since July last year.

In Townsville, the differential has gone from just 2.1¢ a litre to 20.2¢ a litre.

The average gap between regional and metropolitan prices widened from 5.7¢ a litre in mid 2014 to 17.6¢ a litre in December. That extra 12¢ costs owners of the nation's most popular car, the 50L Toyota Corolla, an extra $6 a tank, increasing the mark-up from about $3 per refill to $9.

Nationally, the biggest difference seems to be in Toowoomba, where motorists have gone from paying less than the major-city average to 21.1¢ a litre more. In Townsville, the differential has gone from just 2.1¢ a litre to 20.2¢ a litre.

ACCC chairman Rod Sims said price falls sometimes took a while to flow through to regional prices due to lower sales volumes. But the savings from the oil price slump should have materialised by now, he added.

"This is a hell of a lag," Mr Sims said , adding that the ACCC would do "micro studies" of prices in three unnamed regional centres using compulsory information-gathering powers recently activated by consumer and competition minister Bruce Billson. Those powers are a "bloody great spotlight", Mr Sims said.

The ACCC would be hunting for evidence of cartel behaviour. The locations to be studied are not named because it would tip off Big Petrol. "Just the fact that we are looking will probably give the market a bit of a hurry up," Mr Sims said.

Australian Automobile Association acting chief executive James Goodwin said: "This is welcome but, unfortunately, is long overdue."