Aleks Devic
October 21, 2013
Herald Sun
MOTORISTS are being slugged a record 14 cents more for petrol at the bowser than the wholesale price delivering daily revenue of $39 million to the nation’s two big supermarket chains.
Prices on Monday topped $1.60 a litre while petrol could be found for as low as $137.7.
Coles and Woolworths are set to reap record profits – almost $350,000 per day – over the price gauge, based on last financial year figures.
CommSec chief economist Craig James said motorists should demand a “please explain” from oil companies as to why the disparity was so great.
He said the gap in the last five years had been between eight and nine cents.
“It may be only four or five cents a litre but that is money motorists would like to have and not the businesses selling it,” Mr James said.
“The gap over the last three to four weeks (nationally) is some of the highest we have ever seen.”
On average, motorists are paying up to $15 more to fill their cars while the price gap remains.
A petrol crisis gripped Melbourne this month when dozens of fuel pumps were shut off after Cootes Transport tankers were taken off the road amid safety fears.
Mr James said the Cootes crisis could be a factor for the high prices but, based on international trends, the price should be much lower.
“Motorists have to shop around and put pressure on to keep prices as low as possible.”
Pump prices are expected to drop two to three cents in the next week.
RACV’s acting general manager vehicles Nick Platt said the disparity was indicative of the price cycle.
“Consumers need to be aware of the price cycle and know there is a peak and trough and that they should buy at the lower end,” he said.
But Mr Platt said the “cheap days” were now unpredictable.
The Australian Competition and Consumer Commission is investigating the impact of shopper docket schemes and if the cash is made up with higher grocery prices.
Independent fuel retails say they cannot keep up with the heavy discounts Coles and Woolworths offer.
Coles launched a new assault in the fuel wars with groceries at its petrol station convenience stores being slashed.
But the competition is set to further intensify with US-mega chain Costco planning to open more stores and also offer discount petrol.
The discount petrol business in Australia is worth at least $15 billion.
aleks.devic@news.com.au
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