Petrol prices set to slide

GEELONG motorists can expect petrol prices to fall in coming days as the price cycle passes its mid-point, the director of the region’s largest chain of independent petrol stations says.

Prices at Apco petrol stations around Geelong have dropped on average 1c per day from 155.9c per litre early last week.

Director Peter Anderson said the price cycle, triggered by competition in the market, usually lasted between three and four weeks.

“We have to compete to keep our volume (of petrol sold). When our competitors move, we move,” Mr Anderson said.

“I’d say we are mid-way through the cycle and prices are on the way down.”

Mr Anderson, who operates eight petrol stations across Geelong, said lifting prices al- lowed him to recover from times in the cycle when he lost money.

He said his margins took a hit when the retail petrol prices dropped at the same time as the wholesale petrol price rose.

Petrol was priced at 145.9c a litre yesterday at Apco petrol stations around Geelong including at Barwon Heads, South Geelong, Grovedale and Highton.

Meanwhile motorists were stumping up between 143 and 148c a litre at 7-Eleven in South Geelong, 7-Eleven in Geelong and Caltex North Geelong yesterday, according to the RACV. And prices were set at between 148c and 153c a litre at BP Breakwater and Shell Moolap.

RACV general manager Bryce Prosser said fuel prices were influenced by underlying changes in the oil price.

“There is currently an agreement between OPEC and 11 non-OPEC countries to reduce their crude oil output, which has been a large driving factor of increasing oil prices,” Mr Prosser said.

“RACV provides fuel price information, which allows motorists to see what stage the fuel price cycle is at, and to identify the cheapest prices in their area.”

Meanwhile, a report by the Australian Competition and Consumer Commission into petrol prices released yesterday found that prices in regional cities do not move as quickly — either up or down — compared with the country’s five biggest cities.

Factors contributing to high prices in regional areas include a lack of competition, low volumes of fuel sold comparative to major cities, transportation costs and a lack of convenience store sales, the report stated.

According to the report, the average petrol price across Geelong rose by 14.4 cents a litre between March and June to 147.9c.