ABC News Daily Are the petrol stations ripping us off?
Mar 19, 2026
David Byrne, Professor of Economics at the University of Melbourne, gives expert analysis on fuel pricing and competition policy. He breaks down rapid petrol price rises and explains 'rockets and feathers' pricing. He discusses legal and regulatory limits on proving gouging, the role of oversight, and practical tools like price apps and consumer pressure to keep prices in check.
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Rapid 70 Cent Surge Raised Costs By Dozens Of Dollars
- Australian city petrol prices jumped about 70 cents per litre in a few weeks, from ~150–160c to ~230c.
- David Byrne notes that equals roughly $25–$40 extra per tank for typical 65L vehicles, and worse in regional areas with larger tanks.
Retailers Price In Future Risk Not Just Current Stock
- Petrol retailers set prices based on expected future costs, not only fuel already bought, so rapid price rises can reflect forward-looking risk premiums.
- Lack of visibility into contractual purchase prices makes it hard to distinguish legitimate anticipation from opportunistic hikes.
Rockets And Feathers Explain Price Asymmetry
- Oil-market pricing often shows 'rockets and feathers' where prices climb quickly but fall slowly, signaling potential market power.
- Byrne says a competitive market should pass cost reductions back quickly, but historically they behave like a 'feather' on the way down.