Apps allow drivers to find cheaper fuel

The deck is no longer stacked against car drivers thanks to new technology, writes John Rolfe

MILLIONS of motorists have embraced new technology to save hundreds of dollars a year on their petrol bills.

Fuel is widely considered the leading grudge purchase for most consumers.

Many suspect petrol companies are taking them for a ride due to the incomprehensible “price cycles” in all the mainland state capitals, apart from Perth.

Then there’s the cartel which dictates the international price of petrol.

The Organisation of the Petroleum Exporting Countries (OPEC), along with nations such as Russia, have conspired to cut oil output to elevate prices.

The flow on? The cost of a litre of petrol rose 10 per cent in Australia in the last quarter of 2017.

However, the emergence of petrol websites and apps has for the first time given drivers a fighting chance.

In the final three months of 2015, the major petrol price apps had about four million hits, according to the Australian Competition and Consumer Commission.

In the same period of 2016, the apps attracted 20 million visits. “It’s a great opportunity for consumers,” said Gas Buddy Australia manager Nic Moulis.

These apps typically provide a map of nearby service stations’ charges in real-time; some also advise on whether you should buy now or later.

If the advice is to buy now and you take it, you avoid the peak of a cycle, when prices shoot 20 cents per litre higher overnight.

If you put 50 litres in your car at the lower price, you save $10. Do that 10 times in a year and you are $100 better off.

The mapping function can deliver even greater savings — and more often. The difference between the lowest and highest price in a local area is often greater than 10c/L and, in researching this story, was found to be as high as 38c/L.

A commuter who bought 50 litres a week from the best-value station could save more than $250 a year based on the typical 10c/L saving.

The more you drive, the more useful these apps are.

For example, you may hit the road for work, only to discover that prices have moved to the top of the cycle.

Because not all stations move at exactly the same time, using the mapping function may allow you to find a servo that has yet to raise its prices.

“Petrol websites and apps are beginning to play an important role in providing price transparency and I cannot emphasise enough the importance of price transparency in enabling competition in the retail petrol market,” said ACCC chairman Rod Sims. “The more people that use these websites and apps, the more powerful a role they can play in helping consumers get the lowest prices.”

Motorists who don’t fight back are getting ripped off — ACCC research shows fuel retailer margins on bowser sales are high and growing.