Fuel retailers may be stuck selling at a higher price with plenty of stock on hand, the NRMA has suggested,
“Regional fuel retailers may not sell their fuel stocks as quickly as city retailers, so when there is any change in the international benchmark and wholesale prices of fuel, it generally takes longer to impact on country retail prices. This means that while prices in regional areas might fall slowly, they also tend to rise slowly,” the NRMA shared on their blog.
Prices in Cowra have remained higher than in surrounding towns, with fuel prices dropping into the high dollar-fifties in Young last week, more than 30 cents cheaper than the average fuel price in Cowra on the same day.
“Local competition is a key factor that can drive down prices in a given area. A service station with no local competition can obviously charge more than one that has to compete for your business,” the NRMA reported.
“The presence of independent retailers in an area will also usually drive down prices, as independents tend to have more flexible pricing models and tend to charge less.”
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Despite the slow overall price shift, price-per-litre in Cowra outlets has jumped from $1.69/litre back to $1.81/litre, dropping to $1.67/litre at United Petrol on Kendal Street over the weekend.
But the bargains were still found further afield, with Fast ‘n’ Ezy Canowindra holding out at $1.56/litre, and Metro Petroleum in Young down to $1.57/litre - both at least 10 cents a litre better value than local distributors.
Researchers at Charles Sturt University and Charles Darwin University found that adding one fuel retailer outside of the major fuel providers only reduced the price by one or one and a half centres per litre in the major centres. The report found that most fuel price research was done in major regional centres, leaving smaller rural towns and villages out of the loop on best price, and best understanding of pricing.
But an NRMA spokesperson one silver lining, recommending motorists shop around for the best deal.
"There are a number of factors that go into the prices customers pay at the bowser, starting with the wholesale price the retailer pays for fuel, then transportation costs, retail markup, and taxes are added to make up the price motorists see on the fuel board. Each town is effectively it's own market and the towns where there are more independent service stations competing on price see better prices. "
"The best thing motorists can do is to plan ahead and shop around for the best price. The My NRMA app has the most up-to-date fuel pricing across Australia and easily allows drivers to find the best price in their area. The app can also alert drivers when fuel prices are low in their area and it might be a good time to fill up."
