With petrol prices more expensive in Griffith than they are in Leeton, Griffith residents are wondering why.
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Samantha Tyrrell asked The Area News: “With Leeton just half an hour away, why is petrol in Griffith almost 10 cents dearer?”
“As a mum, I need to save money where I can, and I feel that if the average prices in Leeton are cheaper than here, we are being ripped off,” Ms Tyrrell said.
Griffith prices as checked on Tuesday sourced from www.fuelcheck.nsw.gov.au saw the cheapest 91 Unleaded going for 135.9 cents per litre (cpl) at Lowes, with the most expensive at Coles Express charging 141.9 cpl – six cents difference between the two.
In Leeton, Shell was the most expensive on fuelcheck charging 129.1 cpl – 6.8 cpl cheaper than the cheapest in Griffith, and a whopping 11.3 cpl cheaper then the most expensive in Griffith.
Leeton’s cheapest fuel sat at 127.9 cpl at United Petroleum, eight cents cheaper than the least expensive in Griffith.
Data available to the Australian Competition and Consumer Commission (ACCC) indicates average petrol prices in Griffith have been relatively stable at around 138 to 139 cpl since mid-December 2017.
Average pump prices in Griffith were around 130 to 131 cpl since mid-2017, increasing through October and November to around their current level.
In comparison, the New South Wales regional average for the week ending February 18 has also been around 138 cpl.
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The ACCC spokesperson said there were a number of variables determining fuel prices in a town, including:
- The level of local competition, often, though not always, reflecting the number of retail sites, the ownership composition of the sites and their individual retail pricing strategies
- The volumes of fuel sold (which can provides economies of scale)
- Distance and location factors, including whether or not the site is located on, or near, a highway and likely to attract greater volume demand
- The volume of non-fuel convenience store sales, which may be a factor in business decisions about margins on retail fuel sales.
However, in some regional locations, the presence of a retailer that prices competitively and aggressively can lead to lower prices overall than some larger regional locations.
Monday this week saw Woolworth’s Express fuel priced at 141.9 cpl at both Leeton and Griffith.
Woolworths were asked why prices seemed to stay above the competition, and a spokesperson responded the following:
“Woolworths aims to be competitive in the local fuel market. We monitor fuel prices regularly and are focused on ensuring we deliver great quality, service and value to our customers.”
Their prices dropped to 139.9 cpl on Tuesday.
The ACCC said they do not have powers to set or influence the extent of price changes, however, retailers must not breach competition and consumer laws.
“Under the Competition and Consumer Act the ACCC can take action, including through the courts if necessary, when there is evidence of illegal anti-competitive behaviour, such as collusion or agreements that substantially lessen competition,” the spokesperson said.
ACCC’s advice: “Use fuel price websites and apps (such as FuelCheck, MotorMouth and Gas Buddy) to find timely information about where and when to buy fuel at the best available price. Not only will consumers save by buying at the most price-competitive retailers, but by rewarding discounters they may to help bring some competitive tension to the marketplace.”
Under its new petrol price monitoring direction from the Government, the ACCC will continue to monitor and analyse fuel prices and promote fuel price transparency.