Fuel costs could still tumble, says RACV

THE RACV has warned Geelong motorists to be cautious of fuel price gouging, as the wholesale price of petrol drops to a 12-month low.

The call comes after the average price of unleaded petrol plummeted to $1.17 per litre this week in Geelong, following the recent drop in global crude oil prices amid the COVID-19 outbreak.

But RACV senior vehicle engineer Nicholas Platt said local motorists should still be wary of varied prices across retailers.

“If drivers see fuel selling for any more than $1.17 they should drive on, as there is plenty of lower-priced fuel to choose from,” Mr Platt said.

“RACV would like to see these prices drop further, as wholesale prices are currently only 96.4 cents per litre, added to the fact that Geelong is situated close to a major Victorian refinery.”

Mr Platt said Geelong service stations had responded better than many in Melbourne, where prices have soared to almost $1.60 at a quarter of all outlets.

Unleaded petrol was retailing around Geelong for 111.3 cents a litre to 121.3 cents a litre yesterday, according to the RACV online fuel watch tool.

Crude oil prices have tumbled following a downturn in manufacturing and global air travel as a result of the coronavirus, latest RACV data shows.

But Geelong’s Viva refinery has been unaffected by the price changes of crude oil, which is the base product for petrol production.

A Viva Energy spokesperson said production remained steady including the supply for jet fuel, despite the Federal Government’s decision to restrict international and domestic travel.

“Our supply chain is running uninterrupted including supply to airports, retail service stations and business customers,” they told the Geelong Advertiser. We have a very wide range of sourcing options available for both crude oil and fuel products.”

The spokesperson said the company used a mix of locally manufactured and imported products to enable a “natural insurance” against supply disruption from individual countries or suppliers.