Melbourne service stations increase prices as lockdown measures eased
Petrol prices have spiked again in Melbourne as some retailers look to cash in as more people get out and about. But drivers can still find cheap fuel if they’re prepared to shop around.
North West
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Petrol prices have spiked again in Melbourne as some retailers look to cash in on more people out and about with lockdown measures set to be eased.
The price at some petrol stations has surged to $1.20 overnight, including at Caltex in Seaford, Carrum Downs and Frankston, according to the website PetrolSpy.
But motorists looking for a bargain can still find value if they’re prepared to shop around, particularly in the western suburbs.
The lowest unleaded price recorded by PetrolSpy was 75.9 cents at United in Hallam four hours ago.
United Frankston South’s price was 77.9 cents, while Liberty Sydenham, United and Coles Express in Taylors Lakes and Liberty and United in Baxter were also offering unleaded for 79.9 cents per litre.
RACV senior vehicle engineer Nicholas Platt said the average price across Melbourne was 95.2 cents per litre but was expected to rise throughout the day.
He said Melbourne was experiencing a price spike consistent with the normal fuel price cycle with many retailers expected to increase prices to $1.20.
“If travel is essential, we would advise that now would be a good time for motorists to fill up as prices begin to rise,” he said.
“Wholesale prices are steadily rising and have been for the last 14 days, Melbourne average prices will rise above many regional areas.
“Wholesale prices are still exceptionally low and unless there is a dramatic rise in wholesale price, we would expect relatively low retail prices to continue in most regional areas for the foreseeable future.”
Mr Platt said he expected prices to gradually decrease towards the wholesale figure after the spike.
Australian Competition and Consumer Commission chair Rod Sims said retailers took too long to pass on the savings when oil prices dropped rapidly at the start of the pandemic, which “did not reflect well on them”.
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The weekly average international crude oil price has decreased by about US$50 per barrel since the beginning of the year, with the Australian wholesale petrol price also decreasing by about 50 cents per litre in the same period.
During the same period, the seven-day rolling average petrol price across the five largest cities has decreased by about 45 cents.
“Especially at this difficult time, retailers must not take advantage of the situation to increase their profits, but should pass on savings to motorists,” Mr Sims said.
“At this time the Australian economy needs all the assistance it can get, and lower world crude oil prices are one of the few positives from current world events.”