Motorists throughout the Wimmera have been hit hard at the petrol bowser this month and it is unclear when there may be a drop in the price.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Petrol prices have hovered around and upwards of the 150 cents per litre this past month, a result of what is known as ‘sticky pricing’.
RACV vehicle engineering manager Michael Case said petrol prices in Melbourne are part of the ‘fuel price cycle’, driven by competing fuel stations attempting to undercut each other in order to sell more petrol. He said the lack of competition in regional areas is what impacts the cost.
“Most regional towns across Victoria exhibit ‘sticky pricing', where prices remain consistent for extended periods regardless of Melbourne fuel price cycle trends or wholesale prices,” he said.
“Overall, regional towns tend to respond slower to changes in wholesale prices.
“Reduced competition and lower sales volumes compared to metropolitan Melbourne may contribute to the slower price movements and absence of cyclic behaviour in regional areas.”
Fuel price watch website website PetrolSpy reports Melbourne unleaded fuel to average less than 130 cents per litre as of December 23.
There is still a lack of reprieve for motorists in the Wimmera, with Stawell’s cheapest fuel at 150.9 cents per litre, Ararat at 159.9 and 153.9 in Horsham.
Just half an hour from Ararat down the Western Highway to Beaufort, petrol is sitting around the 135 cents per litre mark.
“Melbourne fuel prices are currently trending downwards. There is also a continuing downward trend in wholesale prices,” Mr Case said.
“As a result of the ‘sticky pricing’, Horsham and Ararat prices have remained relatively consistent throughout December, while Melbourne’s pricing continues to decrease as part of the current fuel price cycle’.”
The exorbitant prices have left many in the region frustrated, especially those in Ararat with some of the highest prices in the region.
“I cannot comprehend why the price of petrol in Ararat is so expensive,” one letter to the editor read.
Lowan MP Emma Kealy said action needs to be taken to bring the costs in the Wimmera to those in surrounding regions and Melbourne.
“I am calling on the Andrews Labor Government to act immediately to deliver all the recommendations from the Parliamentary Inquiry into Fuel Prices in Regional Victoria to relieve cost of living pressures high fuel prices cause,” she said.
“If anyone has information that may assist in developing a case for illegal market conduct, contact the ACCC on 1300 302 502.”
