‘It’s price fixing in a way’: Melton voters want fuel price action

With 12 service stations in one town, you’d think residents of Melton – one of Victoria’s most contested seats at the state election – would benefit at the bowser from healthy fuel price competition.

However, driving around town with Gary Mitchell, 67, on a Tuesday morning, the retired fuel worker is able to predict prices at every servo in town after clocking the price of unleaded fuel at the first Ampol station we pass is 197.9¢ a litre.

“The Caltex, BPs, Shells and Ampol will all be about 197.9¢, and the 7-Elevens will be 2¢ cheaper,” he says.

As we sail past petrol stations, the price signs at each stop vindicate Mitchell’s forecast. One after another, every fuel station is the same price – give or take a cent or two.

“It’s so obvious that it’s beyond ridiculous,” he says.

The increasing cost of living is hurting Victorians everywhere: an exclusive survey conducted by Resolve Strategic for The Age this week showed more than one in four voters (27 per cent) said the issue was influencing them the most this election, outranking all others for Labor and Coalition voters, as well as swinging voters and those living in marginal seats.

Peak hour on the Western Highway in Melton.Credit: Paul Jeffers

However, it’s the cost of fuel that is frustrating the residents of Melton in the outer western fringe of Melbourne, which is on average poorer than Greater Melbourne and far more car-dependent. Sixty-three per cent of homes in the area have two or more cars, compared to 51 per cent in greater Melbourne, according to 2021 ABS statistics.

The seat of Melton has been earmarked as a target seat for the Labor Party this election. Sitting MP Steve McGhie is staring down threats from independents Dr Ian Birchall and Jarrod Bingham and the Liberal’s Graham Watt to take the electorate after 30 years of Labor dominance.

According to data from crowd-sourced petrol price app Petrol Spy, Melton fuel is on average between 8¢ and 10¢ higher than the average for Greater Melbourne.

Petrol Spy founder Andrey Firsov said his data, which is sourced from live petrol prices across the country, consistently showed that there was only proper competition in areas where there were independent retailers like United and Metro.

“It’s price fixing in a way,” he said.

Mitchell, who represents a group of more than 4200 locals dubbed “The Melton Fuel Group”, said it was often more economical to drive to nearby Bacchus Marsh (13 kilometres), Hillside (15 kilometres), Taylors Lakes (19 kilometres), Werribee (30 kilometres) or Hoppers Crossing (27 kilometres), where there are independent retailers to save as much as 50¢ a litre.

“We shouldn’t have to [travel],” he said.

His advocacy group is leading a boycott of petrol stations and plan to canvas residents at polling centres this week. They have been putting pressure on candidates vying for the seat to commit to their cause and help bring more competition to Melton.

Earlier this month Labor’s Steve McGhie told a candidates’ forum held by The Age that he had contacted both the Australian Competition and Consumer Commission and the Consumer Affairs Minister over the issue to no avail.

“They couldn’t do a damn thing about it,” he said. “The only way that you can target these fuel companies here is not purchase it [in Melton]. That’s not convenient for a lot of people, I understand that, but that might be the only way.” On Wednesday he also cited Labor’s other promises to help with cost of living pressures, including capping V/Line fees, free kinder from 2023, free TAFE and a $250 “power saving bonus”.

Watt said he understood the issue as a local living in the area, and said families could save $800 a year on fuel by using the Coalition’s forthcoming fuel saver app, along with other Liberal cost-of-living pledges, such as a $2 cap on daily public transport fares.

Birchall said he was also stung by Melton’s fuel costs and if elected he would, “shine a light on the process of getting an independent retailer into Melton and understand why it hasn’t happened earlier”.

Candidates for Melton: independent Jarrod Bingham, independent Dr Ian Birchall, Freedom Party’s Tony Dobran, Graham Watt of the Liberal Party and current Labor MP Steve McGhie at The Age candidates forum this month.Credit: Joe Armao

Rival independent candidate Jarrod Bingham said while petrol prices were technically a federal government issue, “we can certainly raise it at the state level and advocate for it”.

“But for a candidate to promise that they are going to bring in an independent retailer has absolutely no credibility because it’s not the state government’s responsibility to build a petrol station”.

When contacted for comment, major operators who between them run 10 service stations in Melton, including Viva Energy (Shell-branded stations), 7-Eleven, EG and BP, acknowledged bowser prices were affected by competition in the area, as well as international prices, price cycles in local markets, exchange rates, taxes and local operating costs. Most said they attempted to price competitively.

Ampol, who run two stations in Melton, declined to comment

Melton is highly car dependent with large housing developments on the city’s fringe.Credit: Joe Armao

This story is part of our in-depth local coverage of the key seats of Melton, Hawthorn and Richmond at the November state election.

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