Petrol hike blamed on supermarkets

PETROL prices soared 20c a litre yesterday, a leap experts blamed on lack of competition since supermarkets began selling fuel.

Petrol bowser

PETROL prices soared 20c a litre yesterday, a leap experts blamed on lack of competition since supermarkets began selling fuel.

Motorists were stunned as prices soared from 134.9c a litre on Thursday afternoon to a peak of 155.9c yesterday morning.

Across the city the average price was 151.8c a litre, almost 10c more than the September average.

Motoring insiders said a lack of competition since supermarket giants Woolworths and Coles introduced discount fuel offers had pushed prices sky high.

One expert said while the Singapore fuel price had recently risen more than $US6 a barrel, it had nothing to do with yesterday's dramatic price jump.

"This is about the supermarkets pushing their prices up because of their discount fuel vouchers," he said.

"They are the price leaders and when they move everyone else follows."

The insider, who did not want to be named, said Woolworths and Coles dominated the market.

"Then they offer discount fuel to shoppers who fill up at their petrol pumps," he said.

"But the profit margin is extreme and the worst part is the smaller independent operators and chains all follow and profit-take.

"It is part of the price cycle but it has become a very distinct price jump."

RACV spokesman Michael Case said motorists who failed to fill up when prices were low had been unlucky.

"We clearly have this regular weekly fuel price cycle and while the price has gone up about 15-20c a litre, it will almost certainly go down again within a week," Mr Case said.

"This cycle has been in place for many years and there's no reason to think it won't continue.

"Fuel stations need to make a profit ... but motorists can save money if they follow the cycle."