Melbourne drivers hit with petrol price rise as stay at home restrictions ease
More petrol stations in Melbourne have lifted unleaded prices to 119.9c a litre, just as motorists have more freedom to travel under some relaxed COVID-19 restrictions.
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Petrol stations have been blasted for jacking up prices as Victoria’s coronavirus lockdown starts easing.
The cost of unleaded has leapt to 119.9c at an increasing number of outlets across Melbourne over the past week.
The bowser sting, up about 30c on average, comes as loosened restrictions now allow visits to family and friends, golf courses, and fishing and hiking spots.
Geoff Trotter, general manager of petrol price monitoring agency Fueltrac, said prices had shot up over eight days to a new peak.
It had taken a particularly long 41 days for prices to fall to the lowest point of the last fuel price cycle, he said.
“It’s probably no coincidence that the latest rise is happening at the same time travel restrictions are being relaxed and more people are now buying fuel,” Mr Trotter said.
The RACV recorded prices on Thursday ranging from 81.9c to 119.9c a litre.
The average was 114.1c a litre – up 13.2c compared with Monday.
Three-quarters of the outlets it monitors were selling at the most expensive price, while 13 per cent were still under $1 a litre.
Australasian Convenience and Petroleum Marketers Association CEO Mark McKenzie denied drivers were being exploited.
“The upwards movement is the petrol price cycle, not world oil price movement or anything to do with easing of travel restrictions” Mr McKenzie said.
“COVID-19 does not suspend the fuel price cycle.”
Prices were well down on peaks of 167c a litre in mid-February and 136.5c in mid-March.
“Petrol prices that we see at the moment are amongst the lowest seen in two decades. It is clear retailers have been passing on savings.”
Mr Trotter said: “The reason the industry said it took so long for pump prices to come down was that they had to get rid of previously expensive stock stuck in tanks because fuel sales dramatically dropped during stay at home rules.
“However, they are now moving prices up much more rapidly and maximising their retail margins.”
The wholesale price on Thursday was 95.2c a litre, up from 84c in late April.
The Australian Consumer and Competition Commission last month said petrol retailers in major capital cities had taken too long to pass on savings from plunging international oil prices.
Melbourne’s fluctuating price cycles see pump prices jump to a peak then gradually fall before jolting up again.
RACV senior vehicle engineer Nicholas Platt said prices were expected to continue to increase “as the fuel price cycle kicks back into gear”.