Motorists could be set to pay significantly more at the bowser soon due to Australia’s dwindling fuel supplies, however general manager from McNabb F and R fuel suppliers Vince Bagiante says they’ve had no communication to suggest fuel supply will be impacted.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The national petrol supply has dipped to such a low that it has prompted some in federal parliament to call for a review.
As of the announcement on Tuesday, Australia has just 22 days worth of crude oil, 59 days of LPG, 20 days of petrol, 19 days of aviation fuel, and 21 days of diesel.
Mr Bagiante says they have had no communication from Caltex or anyone to indicate a fuel shortage they need to worry about, and when compared to city prices, Griffith remains on par.
“Caltex have never told us to be prepared for a shortage for the next ten years, or one year, or six months, all in all I think it’s a media hype,” Mr Biagante said.
He says considering there is a six cent freight cost from Melbourne and a seven cent freight cost from Sydney, for prices to be in the same ball park in the country is about country folk looking after one another.
“We get a telegram everyday with the fuel prices, and it has been going up like a rocket, but considering country prices versus the city prices? We have the same. It’s country people looking after country people that supply fuel.”
Each supply is well below the 90-day surplus Australia is required to hold under the International Energy Agency agreement.
Riverina service station owner Paul Seaman said there was upward pressure on prices.
“I don’t think anyone can guarantee the prices will stay down,” he said.
“It doesn’t matter what the price is though, I still have to buy it and I think that’s the situation with most people.
It’s country people looking after country people that supply fuel.
- General manager from McNabb F and R fuel suppliers Vince Bagiante
“If you have to drive, you have to pay whatever price is out there.”
Anthony Pleming, who owns and operates Collin Couriers, said he was watching the prices closely.
“Most freight companies work on an index, where the levy will increase or decrease depending on fuel prices,” he said.
“If fuel increases, [freight] prices increase, especially for those companies doing long trips.”
The cost is likely to become much more pronounced for long haul freighters, which won’t affect Mr Pleming’s business too greatly.
“How much we spend on fuel each month would be much less than [other] companies that have much bigger vehicles and do much longer travel, across state borders usually,” he said.
“[The fuel price] will probably have less impact on us since we mostly [service] the Riverina area.”
It is the diesel prices that has piqued Mr Seaman concerned too.
“I’m a small operation so I’ve got small overhead [costs], so I can keep prices very competitive, but that means I sometimes have to operate at a loss,” Mr Seaman said.
“I don’t have a pump out the back, I can’t dictate the prices.
“Freight [is] usually a constant [price], but when diesel gets dearer, freight gets dearer, and that’s what I’ll have to be paying.”
Friday Fuel Watch
Heading off to the Riverina Field days this weekend and want to get the best prices around? Make sure you’re in the know by checking out the lowest fuel prices around the MIA.