Fuel prices: Road freight to bear the costs as prices reach $2 a litre

With petrol prices breaking through the $2-a-litre barrier, we take a look at where to buy fuel in rural Victoria.

Transport operators are expected to bear the brunt of rising fuel prices, as petrol and diesel surges past the $2 a litre mark in some parts of Victoria.

And transport costs could increase as much as 20 per cent in coming months, as conflict in Eastern Europe shows no sign of easing.

According to the RACV fuel prices website, the highest metro price for unleaded fuel was 221.9c/lt, with RACV putting the average price at 193.7c/lt.

Drivers are being advised by RACV not to pay above 189/9c/lt.

But fuel bargains can be found, if drivers shop around.

PetrolSpy put the price of unleaded petrol at 172.6c/lt at Riordan Express in Hamilton, with diesel sitting at 178.9c/lt.

In Ballarat, petrol was 179.9c/lt at the United Ballarat Central, while in Gippsland the Corner Service Station at Welshpool was selling unleaded fuel for 175.9c/lt, according to PetrolSpy.

Across the boarder in NSW, drivers could fill up at Metro Bethungra for 176.9c/lt.

But for bulk transport operators, rising fuel costs could result in higher transport costs.

Victorian Transport Association chief executive Peter Anderson said while transport operators were “no strangers to fluctuations in fuel pricing”, supply chain disruptions, rising interest rates, and a war in Easter Europe was proving a “perfect storm”.

“On one hand, operators are loathe to disenfranchise customers by raising prices. On the other hand, absorbing higher fuel and other costs will only impact already stressed operators trying to meet payroll, pay their bills, and keep their businesses afloat,” Mr Anderson said.

“Transport operators therefore must act on rising fuel costs and raise their prices.

“We conservatively expect transport costs to rise by 20 per cent over the next three months as a result of this perfect storm – perhaps more.”

Primary producers need pricing relief at the petrol pump, a South Australian senator says, leading a push to cut fuel excise.

Independent senator Rex Patrick told The Weekly Times that with many service stations charging more than $2 a litre for unleaded petrol, now was the time for Federal Treasurer Josh Frydenberg to consider slashing the bowser tax.

“Businesses and households in regional and remote Australia are already feeling the squeeze from extreme fuel prices,” the crossbench senator said.

“Despite the Prime Minister’s hopes, this situation is unlikely to be short term, and the pressure will be particularly acute for agriculture and other fuel intensive industries.”

SA Senator Rex Patrick. Picture: Matt Turner.

Prime Minister Scott Morrison ruled out any changes to the fuel excise rate last week but the government’s position has been less clear-cut in recent days.

On Sydney commercial radio this week, Mr Frydenberg declined to say whether the fuel excise rate would be cut.

The Treasurer is set to hand down the federal budget later this month before a general election expected in May.

“I do recognise the price of fuel has dramatically increased,” the Treasurer told 2GB radio.

Senator Patrick said the Federal Government could afford a short-term hit to the budget in order to ensure farmers and regional businesses weren’t priced out by fuel costs.

“The Government is committing at least a billion dollars a week to election pork barrelling in largely metropolitan seats they’re hoping to win,” he said.

“They should cut that out and make a commitment to provide immediate relief to struggling families and small businesses across the country with a 50% cut to the fuel excise.

“That would deliver a direct benefit to millions of Australians, especially those on lower incomes and those in the regions who spend proportionately more on fuel and have no choice about how many kilometres they drive each week.”