PETROL PRICE TO RISE

MOTORISTS are being urged to fill up at the bowser this weekend before a three-year crude oil price high flows through locally next week.

The RACV says petrol prices are approaching a low point in the cycle, with unleaded seen at 129.3 cents per litre in South Geelong yesterday.

RACV vehicle engineering manager Michael Case warned a price cycle trending upwards could last as long as six weeks.

“Some years ago the price cycle was as short as a week, however in recent times it has been known to last as long as three to six weeks,” he said.

“Prices are beginning to approach a low point in the cycle, so it may be a good time to buy.”

Prices around Geelong were relatively low yesterday, with unleaded at 129.3 cents per litre at 7-Eleven South Geelong; 130.4 at Caltex, Geelong West; and 133.1 at BP, Breakwater according to the MotorMouth website.

Elsewhere, unleaded was at 131 cents per litre at BP Grovedale, 132.6 at Caltex Leopold and 131.5 at Caltex Ocean Grove.

Mr Case said the price cycle arose from increased compet- ition and was driven by competing fuel stations attempting to undercut each other to sell more petrol.

“When this discounting reaches an unsustainable level where profit margins are very low or even running at a loss, the fuel price gets driven back up again by some of the retailers.

“The majority of petrol stations will then follow this upwards trend.”

Growing tensions in the Middle East have raised concerns about the supply of oil to Australia and fuelled a steady rise in the Brent crude oil price, which closed at $US77.43 ($A102.73) yesterday — the highest price since November 2014.

Caltex chief Julian Segal warned petrol prices were set to rise further from the threeyear highs they are already sitting at.

“This is a long way away from the $US35 to $US40 you had not so long ago,” Mr Segal said at Caltex’s annual meeting earlier this week.

“You have doubled the price and the rate of exchange is going down. What you are seeing is a reflection of this.”

The RACV said crude oil price rises were usually reflected at the bowser in seven to 14 days.