Cheap Tuesday petrol a thing of the past

ANDREW FRASER
January 24, 2014
The Australian
THE seven-day petrol cycle that delivered cheap petrol on Tuesdays is gone, replaced by a longer cycle of about 20 days, thanks to the intrusion of retail giants such as Coles and Woolworths, greater fluctuations in global fuel prices and the level of the Australian dollar.
An analysis of petrol prices now and a year ago by The Australian has found not only that petrol prices have gone up dramatically over the past 12 months, but also that they can change drastically within a week.
There was a 9.3c a litre difference in the price of petrol last week in Brisbane compared with the same date a year ago, but this week petrol in Brisbane was 22.2c/L more expensive than on the same date a year ago.
Petrol in Melbourne last week was 4.4c/L more expensive than a year ago, but it is 19.5c more expensive this week than it was a year ago.
Curiously, the seven-day cycle persists in Perth, where petrol is cheaper on a Tuesday and Wednesday. In Perth, the price last week was 11.7c higher than a year ago, and is 12c higher this week than a year ago.
The main reason for the rise in petrol prices during the 12 months was the drop in the value of the Australian dollar over that time, as well as rises in the world fuel prices. Another factor is the change in ownership of petrol stations, which increasingly are being owned by retail organisations such as Coles (Shell), Woolworths (Caltex), and 7-Eleven (Mobil).
Retail analyst Grant Waldeck, from Compare the Market.com, said this changed the pattern of retail behaviour.
“The whole rise of vouchers, which give you 4c/L or whatever off, bundles petrol purchases with what you’re buying in supermarkets, and so in some ways petrol prices are caught up with grocery prices. Going to fill up now often means picking up some milk or bread as well,” he said.
“But motorists can still pick up better prices if they do research and compare cycles.”
The Royal Automobile Club of Victoria’s Michael Case said the seven-day cycle had effectively finished in about 2011, and in Victoria last year the fuel cycles lasted anywhere between nine and 28 days, with an average length of 17 days.
“The only advice we can give people is to be more aware of the fuel cycle, because prices tend to go up quickly then come down slowly,” Mr Case said.
Research by Australia’s motoring organisations showed the highest priced petrol last year was in the West Australian town of Carnarvon, with 173.6c in the September quarter, followed by the northwest Queensland town of Cloncurry, with an average price of 173.5c in the September quarter, then Coober Pedy in South Australia with 173c.