21: Petrol Prices In 25 Seconds
Australian' have long believed that petrol prices are 'rigged', plain English for illegal collusion and cartel behaviour. Market forces are meant to change the price of petrol to reflect changing demand, the cost of production and the ability to supply petrol. An empirical study conducted by Professor David Byrne concluded the petrol market does not operate as a free market.
Petrol In Australia in 25 Seconds
Petrol prices are meant to be determined by market forces, thats called, price competition and thats the law.
David Byrne, Professor of Economics at Melbourne University studied Australian petrol prices.
Professor Byrne found prices are set between fuel companies with a, ‘wink wink, nudge, nudge, say no more’ culture.
This ensures them, bigger profits than if they had competed normally.
Our government receives billions of dollars from petrol taxes.
So, why isn’t it surprising they’ve been unsuccessful in changing petrol companies ‘wink wink’ behaviour.
Government also needs Australia to be more fuel self sufficient. So subsides petrol refineries, with your tax dollars, if they don’t make enough profit.
So tax paying motorists are getting whacked from all sides.
For the full story about petrol pricing join me, Ross MacDowell on the Burgernomics Podcast with leading Australian petrol pricing expert, Professor David Byrne when we discuss Petrol Prices. Are you being taken for a ride?
