Petrol prices may be at their lowest levels in more than a decade but motorists are still being forced to fork out more than they should.
A report by Australia’s consumer watchdog shows the full benefits of low oil prices are not being passed on to motorists.
International crude oil and refined petrol prices fell to their lowest levels in more than a decade, partly thanks to a global oil production glut.
But while average petrol prices in 2015/16 fell to their lowest levels since 2002, retail margins jumped to their highest levels since ACCC records began in 2002.
Australian Competition and Consumer Commission chairman Rod Sims says he's concerned about the petrol industry's high margins.
"This report suggests that in order for there to be more competitive pressure on retailers, consumers need to shop around and reward those offering the best-priced fuel," he said.
The report found average petrol prices in the five largest capital cities - Sydney, Melbourne, Brisbane, Adelaide and Perth - jumped seven cents a litre in the June quarter.
The average price was 121.7 cents per litre in 2015/16.
The international refined petrol price accounted for 51 cents, taxes another 50.4 cents while wholesale and retail costs and margins made up 20.3 cents.
The report says major retailers blamed the increased margins on higher operating costs, including biofuel mandates in NSW and Queensland.
Of the five largest cities, prices were highest in Brisbane, with the ACCC blaming a lack of competition.
Meanwhile, petrol prices in Hobart and Canberra were always higher than the five major cities throughout 2015/16.
