Aussies being ripped off by fuel firms

New research by University of New England professor of macroeconomics Abbas Valadkhani has found a quarter of servos put up prices as soon as fuel gets cheap but make "no effort whatsoever'' to bring prices down when it's expensive compared to the long-term average.

Professor Valadkhani told News Limited the findings could help the Australian Competition and Consumer Commission prove we are being exploited at the bowser. "This study shows the ACCC where it needs to go do its job,'' he said.

The research, published in the latest edition of the leading international journal Energy Economics, analyses more than five years of data and finds that in 28 of 111 locations nationwide, "when prices are conspicuously above the equilibrium path, retailers sluggishly lower their prices but when prices are substantially below the equilibrium values, the adjustment speed is significantly faster''.

Ten of the 28 are in Queensland: Brisbane Metro, Charters Towers, Emerald, Gladstone, Gold Coast, Goondiwindi, Longreach, Maryborough, Mt Isa and Roma. 

Eight of the 28 are in NSW: Broken Hill, Casino, Coffs Harbour, Cooma, Dubbo, Forster, Newcastle and Port Macquarie. Canberra Metro is also identified.

Four of the 28 are in Victoria: Ararat, Benalla, Bendigo and Yarrawonga.

Three of the 28 are in Tasmania: Burnie, Campbell Town and Hobart Metro.

The only South Australian location among the 28 is Port Lincoln.

The only location in the Northern Territory among the 28 is Tennant Creek.

Read the full article at: theaustralian.com.au