Cost of living Qld: Driving habits changing as fuel retailers profit

Queenslanders are changing their habits due to soaring petrol prices – this is a confronting reality.

Almost 60 per cent of Queenslanders are changing their driving habits due to soaring petrol prices, as it can be revealed retailers are profiting more on fuel than they did last year.

RACQ says retailers are making more money on the petrol – with profit margins 14c more in 2024, compared with the first half of 2023.

New research from Compare the Market also revealed 59 per cent of Queenslanders already have changed their driving habits due to the higher petrol prices – which hit 231.9c per litre in some service stations on Thursday.

The research revealed 40.5 per cent of Queenslanders are driving less – more than the national average of 39.7 per cent.

Compare the Market’s economic director David Koch said the rising fuel prices were ­hitting the household budget.

“With petrol prices rising dramatically in the last few months, it’s understandable that at some point something’s just got to give,” Mr Koch said.

“And in this case, it’s people’s driving habits that are on the chopping block.

“While maybe a few months ago it was still viable for people to maybe go out a bit further to shop at local markets to get their produce at a cheaper price, the climbing price of ­petrol may no longer justify an extra 30 minutes or so in the car, forcing people to pay higher prices at closer stores.

Mr Koch said that people should not take the price hit lying down and there were ways to save.

“People may get into a rhythm of going to their local servo that’s on their way home or to work,” he said.

“But by shopping around at nearby stations that may be out from the main roads, could ­result in up to 40 cents cheaper fuel.”

As of Thursday afternoon, fuel prices had jumped significantly to 231.9c per litre at almost 65 per cent of services stations in the Greater Brisbane region.

However, there was still a 52 per cent difference between the cheapest and most expensive stations.

RACQ principal economist and affordability specialist Ian Jeffreys said there had been an increase in wholesale fuel prices reflecting a rise in international oil prices and a decline in the Australia dollar against other currencies.

“But in addition to these international factors, indicative retail margins have been creeping up higher,” he said.

“In late-2022 and the first half of 2023, the average indicative retail margin on the common high price during the first week of the price hike was 36 cents per litre.

“These indicative retail ­margins have crept up for the second half of 2023 and into 2024, with the current hike ­hitting close to 50cpl.

“The market is not working in the best interests of motorists, compared to other parts of Australia, and something needs to be done about it.

“RACQ is looking closely at this and how the market could be better regulated to encourage fair fuel prices for motorists,” he said.

Dr Jeffreys said Queensland was at the price hike phase of the fuel cycle.

“We expect prices will peak early next week, they will remain in the expensive phase of the cycle for a week or so before they slowly start dropping again,” he said.

“What we see in the price hike phase of the cycle is the big brands hike their prices first and then the rest follow slowly – that’s why you see the huge discrepancies in the market and why it’s so important to shop around.”

An ACCC spokeswoman said the average price was about 220c a litre.

“We encourage motorists to use the available fuel price apps and websites to shop around, because there are usually a range of prices available,” the spokeswoman said.

“While many retail sites appear to have increased their prices, motorists may find some that have not.

“For example, the Petrol Spy website showed that as at 1pm this afternoon, there were some service stations in Brisbane with regular unleaded petrol prices at 178.9cpl.”

Compare the Market’s Chris Ford said the average retail price for unleaded 91 increased by 20.23 per cent since the start of 2024.

“While fuel prices fluctuate in regular cycles across South East Queensland, there’s no doubt that the latest highs will be a kick in the guts to motorists amid the cost of living crisis,” he said.

“The citywide average has also been creeping up each day since the start of the cycle,” Mr Ford said.

“For context, the average was just $1.89 a week ago, meaning the average driver would be forking out $9.50 more to fill up a 50-litre tank right now based on these ­averages alone.”

Morayfield resident Leica Pitt fills up at Costco North Lakes. Picture: Lachie Millard

DRIVE TO SAVE TAKES LOYALTY

South East Queenslanders are taking up Costco memberships for discount petrol, despite huge lines at the bowser.

Costco Wholesale Australia’s country manager Chris Tingman said that as memberships continued to grow in Queensland, the business was looking for opportunities to expand outside of the southeast corner with a focus of lots large enough for fuel stations.

“Our fuel stations are incredibly popular among members, with our pricing policy following the same philosophy as our warehouses – to offer our members the highest-quality fuel at the best possible prices,” Mr Tingman said.

As the cost-of-living crisis continues to bite, Queenslanders are looking for every opportunity to save on expenses, including joining loyalty programs to get access to wider discounts, such as the petrol discounts at Costco fuel stations.

Leica Pitt, from Morayfield, said she maintained her Costco membership mostly for the discount petrol.

“I’ve been a member for five years now – we joined to get fuel cheaper and it always is,” she said.

“I drove past one just before it was $2.09, this one’s (Costco) about $1.85, so yeah, quite a bit of a saving.” Ms Pitt said she was constantly on the lookout for ways to save money.

“Everything is so expensive now, it’s really disgusting,” she said. “We can’t go out and do the things we should be able to do at our age, we don’t go out for dinner much anymore, we’re trying to plan a trip but how can you save?”

Originally published as Cost of living Qld: Driving habits changing as fuel retailers profit