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Petrol giant BP Australia has conceded price cycles are confusing and causing 'angst' to the motoring public.
However BP, in its submission to the Australian Competition and Consumer Competition's petrol inquiry, says the cycles are indicative of a competitive petrol industry and do benefit consumers.
“However many consumers do not perceive it to be a good thing,” it says.
It concedes that public perception of the industry is poor, but refutes the common criticism that petrol companies increase prices before weekends and public holidays.
“Price movements leading up to long weekends are generally exactly as they would be in any other period,” it says.
BP said movements in retail petrol prices at its outlets closely followed movements in the Singapore parity price. “At times we see divergence between movements in the Singapore price and local retail petrol prices,” BP says.
However, it said divergences were the result of "market behaviour," and “offset each other over a period of time”.
BP agreed with the statements made to the committee by Shell and Mobil, that a highly competitive market had contributed to Australian motorists paying among the lowest prices in the developed world.
BP Australia, in its submission, also say, supermarket shopper dockets face an "uncertain future” because of intense competition in the supermarket business.
An increasing number of imports have entered Adelaide since the closure of Port Stanvac, with the trend expected to continue.
Price cycles are not unique to Australia, yet the “short and sharp” nature of the cycles is uncommon.
The ACCC inquiry is expected to report to federal Treasurer Peter Costello by October 15.
The committee will hold a public hearing in Adelaide on August 29.
