Savvy motorists can cut fuel bills by $250 a year

Melbourne drivers can save $250 a year if they buy petrol at the cheapest point in the price cycle and shop around at other times but a probe has also found it is now harder to consistently buy the cheapest fuel.

Melbourne drivers can save $250 a year if they buy petrol at the cheapest point of price cycles and shop around at other times.

But an investigation has also found it is now harder for motorists to consistently buy at the best time than a decade ago.

Frustrating metropolitan price cycles see the cost of unleaded spike by 20-30c a litre from a low, then gradually decline back to a discounted level.

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While there was once a predictable, weekly cycle with an easy to detect cheap Wednesday and peak Friday, cycles now last about five weeks.

ACCC commissioner Mick Keogh.

Price jumps were also previously less dramatic, averaging just 11c per litre in 2009.

An Australian Competition and Consumer Commission review states: “Compared with the weekly cycles in 2009, the increased duration of price cycles over time has made it more difficult for motorists to buy petrol consistently at the lowest point of the cycle”.

The changing pattern and regularity of price cycles had cost Melburnians an estimated $30 to $35 million in one examined year alone.

However the Report on Petrol Price Cycles in Australia also notes: “While changes in price cycles … have led to less certainty around when the trough occurs, the longer durations of price cycles can present opportunities for motorists to save money if they shop around”.

The watchdog’s analysis estimates Melbourne drivers filling a 50-litre tank weekly can save $150 a year if they always buy at the low point of a cycle.

Shopping around for the most competitive price the rest of the time could cut a further $100 from fuel bills.

Taking advantage of where and when to buy potentially saved a combined total $220 million annually.

Not all retailers put their petrol prices up or down at the same time. Picture: Getty Images

The review found it takes about six days for all retailers to shift from a trough to peak price, giving motorists the chance to swoop on sites that are slower to move.

“While they are not illegal, the retailers’ use of price cycles to maximise profits really infuriates drivers as they can see no reason for them to exist,” ACCC Commissioner Mick Keogh said.

“There’s a common perception that all retailers put their prices up or down at exactly the same time, but our research shows this isn’t the case. So if you see prices going up at one retailer, use an app to find another who hasn’t yet raised their price.

“There is also a significant difference between the cheapest and most expensive service stations throughout the price cycle.”

Prices could be checked on websites and apps, such as the ACCC, RACV, MotorMouth, GasBuddy, 7-Eleven and Woolworths.

The ACCC last year found Caltex, BP and Coles tended to lead Melbourne price cycle increases. United, Woolworths, and 7-Eleven were typically first to fall from peaks.

Unleaded prices in Melbourne on Thursday afternoon averaged 141.2c a litre.

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@KarenCollierHS