A spike in petrol prices has motorists’ heads spinning, after Wagga’s average climbed by more than nine cents in just four days.
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From Sunday to Wednesday, the average price per litre jumped from 129.5 cents to 138.7.
Independent service station owner James Smithson said he was just as surprised as everybody else by the hike.
“I don’t understand it either,” Mr Smithson said. “The price rise has nothing to do with us retailers and I think the public has a right to question the increase.”
For independent sellers, the terminal gate price heavily influenced what they sold petrol for. The price of the fuel is set when it’s loaded into the tanker – not when it’s ordered – meaning an overnight rise can result in a more expensive product at the bowser.
Whether or not to pass on the increase was then a decision to be made based on what the market was doing.
NRMA spokeswoman Rebecca Page said the rises weren’t isolated to Wagga – petrol prices had soared everywhere after oil-producing nations agreed to reduce supply.
A weakened Australian dollar had added to the problem, but there was light at the end of the tunnel.
“There’s good news in that the Aussie dollar has risen slightly against the greenback and the barrel-price of oil has fallen by about $3,” Ms Page said.
“The worst should be behind us, we don’t expect to see further rises, but it could be a week or two before the terminal gate price reaches Wagga.”
The Australian Competition and Consumer Commission (ACCC) had warned of the rises last week, with chairman Rod Sims citing OPEC as a key factor.
“Along with the falling exchange rate, the OPEC agreements are the primary reason for increases in wholesale petrol prices over the past six weeks and why motorists are likely to see higher petrol prices in the near future,” Mr Sims said.
“The OPEC cartel, therefore, continues to cause Australian motorists to pay much more for petrol than they should.”
With the price rise coming as a shock to many, Ms Page said people should make use of petrol price apps and look for a good deal.
“More often independent service stations are cheaper because petrol is their core product and they need to compete on cost,” she said.
“We encourage motorists to support independent operators.”
Stephen Mudd
Stephen Mudd is a journalist for Fairfax Media west of the great divide. He loves music, dogs and travel.
Stephen Mudd is a journalist for Fairfax Media west of the great divide. He loves music, dogs and travel.
