Thousands of grey nomads who have spent months, if not years, carefully planning their great adventure have had their budgets thrown into absolute chaos by skyrocketing fuel prices.
Experts are now warning that unleaded petrol could cost $2.15 a litre in the coming weeks as the invasion of Ukraine and talk of further sanctions on Russia drive up global oil prices.
Those oil prices have spiked 30% over the past two weeks.
Russia is by far the world‘s biggest exporter of crude and oil products but the US and European allies are now considering banning imports of Russian oil, which makes up around 7% of global supply. Such a move would be a major shock to the world economy.
And these global events have quickly translated to serious pain at the bowser here. The average petrol price around Australia last week was $1.84, with that price point now rapidly headed for $1.95.
Places like the Northern Territory and Tasmania were paying around 195 cents per litre on average.
And, for grey nomads and soon-to-be grey nomads, the sky-high fuel prices and the uncertainty about just how much higher they might go is a real worry.
David Younger has just finished planning a trip from his home in Bunbury WA to Victoria next month, but now he’s having his doubts.
The US and European allies are now considering banning imports of Russian oil.
“With the price of fuel that keeps going up … $2.71 on the border … I was wondering how many other grey nomads are thinking twice on making a long trip with the price of fuel that keeps going up,” he said. “This would make it harder on caravan parks as I would have to do more free camping to save money and visiting national parks.”
It’s an issue not lost on those who run van parks.
William Condon from the Black River Stadium over-50s park near Townsville in Queensland is not hopeful that it’s going to be a strong season.
“We are not expecting 2022 to be a good year,” he said. “Mainly due to the Covid and fuel prices, too.”
There have been growing calls for the Government to offer motorists relief by slashing the fuel excise. Independent senator Rex Patrick wants that excise halved to 22 cents a litre to help every Australian family and small business.
However, such a move would come at a $6 billion impact on the budget, and Treasurer Josh Frydenberg has previously rejected such calls, saying that the money received from fuel excise goes directly into funding infrastructure projects.
Grey nomads lucky enough to be passing though the NSW Outback town of Broken Hill over the weekend would have been wise to fill up their tanks to the brim. The ABC reports that an impromptu price war between two stations saw the $2-per-litre for petrol drop to as low as $1.30, and the price of diesel plummet to just 55 cents.
“We just kept it for one day, just for a promotion, as a bit of friendly competition,” Argent Street service station owner, Priyanshu Reddy said.
How much? Luck visitors to Broken Hill couldn’t believe their eyes on the weekend. PIC: Ethan Davis / ABC
The two stations served more than 2,000 motorists – more than 12% of Broken Hill’s population – in less than 18 hours and by the end of the filling frenzy the bowsers had run dry.
“Normally we are the cheapest competitor in Broken Hill,” Beryl Street service station owner Arvind Ramidi said. “All of a sudden the other servo started matching the price and I called our head office and they told me I could lower our price by two cents so we just kept going down down down until we sold out.”
The Royal Automobile Association, which has kept records of petrol prices across the South Australian and Broken Hill council areas since 2008, said records were broken.
“I don’t think we’ve ever seen diesel prices at 55 cents,” future mobility senior manager Mark Borlace told the ABC. “When you consider that 43 cents of that is going to the government as tax, you’ll go broke selling fuel at that price.”
But he said it was refreshing to see price matching among petrol stations in a regional area.
Well as for me I’m selling my van and cruiser and getting a small car and fly when I can hire a car and do my travels that way. No registrations, insurance
For us long distance travellers it will sting us hard in the pocket.
Cant travel without fuel so will have to try and cut back hard on non essentials…like Caravan parks..!
We started our lap in October last year. Due to the increase in fuel prices and also price hikes in caravan and Showgrounds we are now doing house/pet sitting on our journey. This gives us the chance to explore around the region we are staying in at no cost for accomodation and using less fuel. It works for us. John and Sharon.
Diesel $1.95 a ltre. in Tassie Has been for several weeks now. Somebodies making a quid out of it.
We can blame Vladimir Putrid for this mess..!
Crossed the Nullarbor two days ago. Diesel Norseman to Eucla $2.00 – $2.26 then Nullarbor Roadhouse $2.56, then 142 kms down the road next Roadhouse at Nundroo $1.84 diff 72 cents a litre.
I don’t think selling you rig and think about flying ,hiring a rental car because their prices will skyrocket as well . Might just have to stay at home
Well low cost and free camps will be used more than ever now
If people rely on fuel prices being reasonable to do their travelling they should probably stay at home.
Really?? Nobody would ever have expected the prices to soar as they have done. Currently in my area 221.9L yesterday unleaded, diesel not much cheaper & still expected to rise even more. So glad you have the funds to cover this huge increase but not everybody is that lucky.
Just tell me this please. How much of this fuel was already stored in tanks at Petrol Stations before the price increase. Gouged again