Petrol pain on way for region motorists

MOTORISTS are being warned to brace for petrol price pain, with the cost of unleaded fuel predicted to jump above 160 cents a litre.

Geelong’s largest independent fuel retailer is expecting a seven-cent-a-litre rise in its buying price after part of the global supply chain was halted following an attack on crucial Saudi Arabian oil facilities.

But the state’s peak motoring body say the true effect of events in Saudi Arabia may not be seen for weeks.

APCO director Peter Anderson is expecting his buying price to rise following a slight lift since the weekend.

“On Sunday I was told to expect a rise of seven cents per litre by Wednesday, so that means it will have to get passed on (to consumers) somewhere,” Mr Anderson said.

“But I’ll watch my competitors, see what they are doing and react accordingly.”

Yesterday unleaded petrol was selling for 132.9 cents a litre at BP in Norlane; 131.9 at Shell in Moolap; and 136.9 at Shell in North Geelong. At APCO stations motorists were being asked to pay 128.7.

Some Melbourne petrol stations were selling unleaded for more than $1.60 while in other areas it was as low as 128.7.

Mr Anderson said Melbourne’s fuel price fluctuations typically took four or five days to be reflected at Geelong region bowsers.

RACV vehicle engineering manager Michael Case said the average price yesterday across Geelong was 132.4.

“Melbourne is experiencing a price spike of about 30 cents per litre. Following that, we would expect a similar rise in Geelong,” Mr Case said.

“The current fuel price cycle appears to be progressing normally with the recent rise in Melbourne coincidental with the recent activities in Saudi.

“We generally experience a delay of approximately two weeks before we notice any effects at the fuel pump.”

Mr Anderson expected price rises resulting from attacks on Saudi Arabian oil facilities to be momentary.

“Things aren’t as bad (in Saudi Arabia) as first thought but it all depends on how (American president Donald) Trump reacts,” he said.

Tensions between Iran and the US have flared, with the US believing Iranian-backed militia are behind attacks on the Saudi oil infrastructure.

Mr Anderson said he sourced petrol from Viva Energy in Corio and Exxon Mobil’s Altona North refinery.

“The two Victorian refiners can’t produce enough fuel for Victorian needs and they have to import fuel as well,” he said.

“It’s got to be of great concern that if ships didn’t turn up we’d have big problems.”