The massive divergence between the cost of fuel in the cities and in the bush has given many an unsuspecting grey nomad a nasty shock and thrown many a Big Lap budget into chaos.
However, according to the Australian Competition and Consumer Commission (ACCC), the gap between regional and city fuel prices has been shrinking dramatically.
“The gap between regional and city prices is now only 1.9 cents a litre, whereas it was up around 17, 18 cents a litre a couple of months back,” said ACCC chairman, Rod Sims. “That had a fair bit to do with a very low pass-through of reduced world oil prices into petrol prices in rural areas, but now that pass-through has occurred. “
He said the gap between rural and city prices was currently less than normal but that the price difference would likely widen again soon.
“We think the longer-term gap is 5 or 6 cents a litre,” said Mr Sims. “So, when it was around 17 or 18, that was three times what we’d expect. And we think there will be a little bit of a correction.”
In its second quarterly report into prices, the ACCC found that the average bowser price across Australia’s five largest cities had risen back to $1.33 a litre by the end of March. They had been as low as $1 in some areas during the March quarter, before global oil prices rebounded.
The ACCC said petrol prices had been relatively stable for some time.
“They’ve been trading about $1.30 for the last month or two, which is good news for consumers that some of that lower price has been locked in,” said Mr Sims. “And, of course, oil prices are probably around their long-term average now.”
filled up with diesel at Geographe Petrolium in Busselton about an hour ago 3.30pm Wed 13th May at 131.9 hope it stays there for a lot longer.
I filled up with petrol at united east Blaxland an hour ago and paid 124.7 per litre unleaded
I live in regional SA and the cost of fuel here is often up to twenty cents a litre more than Adelaide, espeially diesel. We usually travel forty kilometers away each fortnight to do our shopping and fill the car at the same time, although even there it is usually, around fifteen cents higher than Adelaide.
Cheers Andrew
Saying that the price difference is only a few cents, these people obviously don’t travel. Recently we drove from Karratha, WA to SA, prices from $1.32 in Kalgoorlie to $1.88 at Caiguna. Eucla was $1.69, a massive 19c/L difference to the other roadhouses across the Nullarbor. I know that there are more expensive outback locations and one needs to be ready to pay or just don’t go.