Fuel price issues

And the rip-off servos are still crying in their beer.

The greedy servos have stuck their snouts even deeper in the trough.

https://9now.nine.com.au/today/petrol-prices-australia-sudden-hike-in-fuel-costs-explained/80a0b381-72c1-416f-ac02-e64a7fc02287

Located in the Far West Darling Region of NSW, independents always are cheaper here, because are more nimble with their pricing, then the big brands follow, dispite their dodgy discount vouchers

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An update on the disparity between U91 and diesel prices.

"Diesel price hit by impact of COVID-19

By Lara Pearce15:05

There has been widespread scrutiny of increasing price margins on unleaded petrol amid a coronavirus-induced global price plummet, but new analysis suggests those driving diesel cars are getting an even worse deal.

New research published by the NRMA reveals the gap between diesel’s wholesale price and prices at the bowser has almost doubled since last year.

The gap between wholesale and retail prices for diesel in 2020 is now 19.6 centres per litre – among the highest figures ever recorded. This is an increase from an average of 11.2 cents per litre last year."

I filled up at the local United today and U91 was 99.9 cents/litre, but diesel was 117.9 cents/litre, a staggering 18% more for no good reason.

As well as the normal diesel pumps, this servo has a dedicated row of high flow diesel pumps so diesel sales are no drop in the ocean.

Tassie is moving over to real time fuel monitoring


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I have yet to be convinced real time monitoring and reporting makes a significant difference in the majority of fuel purchases, and hence has little effect on prices in a general case, accepting it might work a treat in some localities.

Reasons include that not everyone uses the apps/information, sometimes the drive to the cheaper servo negates any saving, and many of our top ups fall into habit or convenience of the moment unless we are ‘on the road’ to somewhere and have to.

My basis is unscientific and local - seeing visually similar numbers of vehicles queued at higher priced servos when much lower priced ones are literally only a few blocks away.

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I think you are right. There seems to be a mental block for many where to do comparative shopping either the product has to be in front of people (supermarket) or a significant purchase (whitegoods, cars etc). Somehow fuel is not noticed despite the fact that for many it is a very important purchase.

I recall an interview with a rep from the industry on TV about the weekly or two-weekly fuel cycle. He was back pedalling like he had the yellow jersey on in reverse when the journalist asked him about government threats of price control.

“If you do that people will miss out on the bargains” he said.
“But what about when the cycle is really high?”
“If you control prices people will miss out on the bargains” he said.
“So fuel companies are in business to sell their product as cheaply as possible?”
mumble bargains mumble
“Or do they set their prices to maximise profits then?”
mumble
“So what are the criteria for deciding price structure?”
“Well it allows for bargains” he said
“Always?”
mumble







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The idea being touted is that this real time pricing info will cause prices to drop, my response is in a pig’s eye it will. I think real time pricing is just an easy out for Govts to suggest they are doing something about pricing while actually doing nothing really constructive in that space. Space being used here to indicate a large void.

What I think this real time pricing does allow is large petrol companies to somewhat collude over their prices without having to meet in a room or over electronic media, again this is only my thoughts and may in no way reflect actual business practices or on the ethics of large petrol business. Govts honestly are more happy to have higher pricing as it generates more GST income for their coffers.

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The games. Nothing to see but good old fashioned Aussie ingenuity about making money. I love the differences between the capital cities. The graphs show it all.

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The first of a planned six Liberty Oil servos has now opened in Cairns.

The nearby servos immediately dropped their pants, oops, prices to match by around 5 to 7 cents a litre for U91.

I think I can hear that old gunfighter ballad playing in the background.

“When Liberty Oil came to town, the theiving grubs would hide”.

I’m a regular user of the NSW government’s Fuel Check app.

Recently, it has started to display a highest state price of 999.9c/litre, for several fuel types. This leads to a ridiculous price range being displayed, and I imagine it must also skew the average price. I’ve sent them feedback to suggest that they should sanitise their data.

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In Tassie, if you are a RACT member and have a membership card, you can get 6c/L off at participating United Petroleum petrol stations.

While Tassie currently doesn’t have a dedicated fuel price app, PetrolSpy.com.au can be used to see current (or recent prices). It is important to check when the price was last uodated.

Unfortunately memberships cards from mainland automobile clubs aren’t honoured for the same discount, for those visiting Australia. However, at the moment Woolworths servos match the 6c/L discount if one uses shopper dockets or vouchers on their Everday Reward card.

Intentionally done perhaps? Shew the average up and motorists even if paying “premium” pricing per litre may still consider it a bargain and not complain when they check it against the average.

I filled up our vehicle at our local United yesterday where they appear to be locked in a fight to the death with the newly opened Liberty after they both dropped their U 91 price from 114.3 cents/L to 98.9 cents/L whilst the nearby Puma, Caltex and Woollies did not follow suit.

The Liberty is probably desperate to try to build a customer base as the previous Coles Express customers are long gone and there is hardly any cutomers on the premises when we drive past.

https://petrolspy.com.au/map/latlng/-16.948634298221904/145.74410003762603

The local United is still the busiest servo in the area and appear to determined to remain that way by selling way below the other United servos in the region.

Wow. What a difference a day makes.

Whilst the new Liberty site has had no or few vehicles there when I have driven past including yesterday, when I went to and from Dan Murphy’s this afternoon, not only was the site chockas, but vehicles were queued up out onto the main road.

Eat your heart out, Cairns fuel cartel members.

The Federal Government has announnced a plan to boost fuel storage and refining in Australia.

An article predicting that fuel prices will be inflated this weekend.

https://www.9news.com.au/national/petrol-prices-drivers-told-to-brace-for-fuel-price-hike-before-the-long-weekend/9cb2d71e-3b6e-4e3f-88e2-0d87db178f42

At least Cairns now has competitive fuel prices, thanks to United and Liberty.

https://petrolspy.com.au/map/latlng/-16.948634298221904/145.74410003762603

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Woolies Caltex has joined Coles Shell in raising the margin between 91 and 98 from $0.18 to $0.20 litre locally. Nothing to see as the government (ACCC) reinforces profits and businesses are important and this is just good, honest competition within the pseudo-random price cycles.

edit: looks like Coles Shell upped the ante to a $0.22 spread!

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The price gouging fuel industry is sending motorists their usual Happy Easter message.

In Cairns, United and Liberty are both 133.9 cents/litre for U91 whilst the cartel thieves are up to 142.9 cents/litre.

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I realise this is an old subject so sorry to bore anyone again.
Please see below an email I received from my question to FuelWatch about the price of fuel in Perth.
I asked them about the incredible variation in the pricing that happens at times ( up to 40 cents) in Perth. If this done in any other industry there would be an uproar.
Is there any where the public can bring the fuel companies to account?
“Extract from email”
Fuel prices are not regulated in Australia. Pricing is market based and not necessarily based on the cost price and there is no obligation to change prices (either up or down) in response to changes in costs. As with other retail goods, sellers are free to set their prices, it is not against the law to set a price well above the cost price. FuelWatch does not control or set prices.

The main driver of fuel prices in Australia are the relevant international benchmarks. Australia uses several benchmarks for fuel. For ULP, this is MOPS95 (diesel uses the “gasoil” benchmark), which are determined by trades through Singapore. The oft-quoted West Texas Intermediate (WTI) price has no relevance to Australia. While Brent is a better indicator of the global crude oil market, and Tapis is the benchmark for crude oil used in Australia, only the MOPS 95 benchmark is relevant when considering Australian retail petrol prices.

Changes in this benchmark take 7-14 days to flow through to the metro area and a further 4-6 weeks to flow to regional areas, this lag occurs both upwards and downwards. This benchmark has been trending upwards over the last 10 months. Currently, this benchmark is around AUD$141/barrel.

The Perth cycle has typically been seven days from the highest to lowest prices. However, as you have noticed, this has been disrupted. This was led by Ampol who extended their cycle to 14 days between highest and lowest prices. Other companies have altered their pricing to match this.

The ACCC has found price cycles are simply a profit-maximising strategy used by fuel companies. This disruption is most likely an attempt to realise greater profits from the Perth market.

When comparing the difference in prices compared to the metro area, it is important to consider the price cycle. Comparisons made when the price cycle is at its peak or trough can make the metro area appear substantially higher or substantially lower than regional areas.

As you are in WA, you have an opportunity which motorists in other states do not have to time your purchase - FuelWatch releases tomorrow’s prices at 2:30 pm each day so you can work out whether it is cheaper to purchase today or wait till tomorrow. Ultimately the best thing you can do is use FuelWatch to find and reward the most competitive retailer with your business, putting downward pressure on prices.

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