People power hits the bowser
Jason Gregory
January 18, 2007 11:00pm
PEOPLE power yesterday forced the fuel giants to keep bowser prices down.
Prices for unleaded fuel hovered a few cents above $1 in southeast Queensland as major retailers resisted the usual midweek price hike after public outcry over inflated costs.
FuelTRAC's Geoff Trotter said Coles and Woolworths felt the most pain yesterday after customers took advantage of 10¢ a litre supermarket discount coupons.
"The pair have been inflating their prices 10¢ above what they should have been charging to cover the coupons for six weeks. This week they have been exposed because the other companies have not followed the lead this time," he said.
"It is now costing them money but those not accepting vouchers would still have made a tidy profit."
Caltex and Shell attempted to raise the bowser price by at least 9¢ a litre on Wednesday.
Most Brisbane service stations were yesterday selling unleaded petrol between 102.9¢ and 106.9¢ a litre. Those honouring 10¢ discount vouchers would not have covered the terminal gate price of 97.5¢.
Earlier this week, Australian Competition and Consumer Commission chairman Graeme Samuel revealed that motorists were being overcharged up to 10¢ a litre, and demanded a price reduction within a week.
RACQ public policy manager Ken Willett said the Trade Practices Act could be amended to stop petrol companies from abusing their market power at the refinery and wholesale level.
"At the moment, all Graeme Samuel can do is name and shame. It just bounces off these people like a pea-shooter bouncing off an elephant and what we are seeing is only a temporary solution," he said.
Intense scrutiny has also forced petrol companies this week to ignore a long-established weekly price cycle.
By their own admission, oil companies increase prices midweek – with the Shell website claiming price fluctuations are good for consumers.
"Some motorists may be annoyed if they see a low price in the morning, yet when they go to fill up in the afternoon, the price has risen. However the price fluctuation provides motorists an opportunity to save," it says.
Latest Comments:
Dear Editor,
Of course Graham Samuels can name and shame the oil companies, and after all, can do it with public help by setting up a hotline for people do dob in stations that try to lead rises.
Posted by: Jack Smith of 4:16pm today
Guys - it's all due to supply and demand. Demand picks up in the middle of the week and drops after Friday to a low on Tuesday or Wednesday - hence the pricing cycle. As for the price dropping this week, when the wholesale crude price drops, it takes time to filter through to the pump. Just because the Singapore Tapis price might be $55/bbl doesn't mean that the oil companies have large stockpiles of crude and product that were purchased at $60/bbl. What we've seen this week isn't "people power" or threats from the ACCC - just the market at work. In WA where the government has restricted price changes, the average price has RISEN around 2cpl. I don't like high fuel prices any more than the next person, but it's all got to do with market economics.
Posted by: Jon Albiez of Wynnum, QLD 3:59pm today
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