Greedy servos blamed for consumer hip pocket pain at the petrol bowser

    Daryl Passmore
    The Courier-Mail
    January 08, 2014


BRISBANE drivers are paying an extra 8¢ a litre to fill up as petrol prices hit record levels - and the bowser pain is set to get even worse.         

Local service stations were yesterday slugging motorists as much as 169.9¢, with an average of 159.8¢, but Sydneysiders were paying an average of just 151.5¢.

And while Gold Coasters were forking out an average 160.3¢, drivers across the border in Tweed Heads could fill up for just 148.5¢.

RACQ spokeswoman Renee Smith blamed "greedy" retailers, saying Queenslanders were paying the price of a greater concentration of market power by services stations owned by Coles and Woolworths.

The supermarket chains, however, said they simply followed the market trend and the increases were driven by factors such as high international oil prices and a weaker Aussie dollar.

The motoring organisation yesterday reported that Brisbane's average monthly price in December was the highest ever, while official figures from the Australian Institute of Petroleum for the first week of January show it was the most expensive start to a new year since 2004.

Petrol prices set to reach near-record levels

RACQ blames greedy retailers for record high petrol prices

And motorists have been warned to prepare for more hip-pocket pain with further hikes forecast for next week.      

Commsec economist Savanth Sebastian said increasing overseas demand and a weaker Aussie dollar would keep pushing petrol prices up in the next week or two.

Consumer advocates are calling on independent fuel retailers to get serious about taking on the major chains.

Geoff Trotter, general manager of petrol price monitor Fueltrac, said the onus was now on the independents.

"Let's see some competition," he said. "It's time the independents put up or shut up."

He said the size of service stations' profit margins meant there was "plenty of room for serious competition".

The margins on pump prices have increased from 4¢ a litre a decade ago to 10¢ now, with wholesale margins adding another 9.4¢ a litre.

Reg


The chairman of the ACCC should get his own house in order before giving advice to the Government on asset sales. His silence is deafening while oil companies ride roughshod over us unfortunate consumers      

Fred


It is no use blaming the servos they are just doing what all of use would do in the same situation ......trying to make as much money as possible, thats what they are in business to do. The fault lies squarely on the shoulders of the government they have the power to rein in excess profit taking but as they are part of the profit making they will do nothing about it.      

Dave


Meanwhile, all the hipsters drive around town in their SUV or 4wd like they are participating in Bathurst, then whinge about the price of fuel...go figure.           

Servos make very little of their profit from petrol as there's very little margin for profit.

They make their money off the other items they sell.

If a servo sold nothing but fuel, it would be broke in a matter of weeks or months.

'Servo greed' being responsible for high prices simply isn't true.

The Heartless Felon wrote on Jan 8^th, 2014 at 7:26am:


No, merely commenting on the substance of the article he posted.

Which, I daresay, is why he posted it.

People buying fuel are being ripped off - I agree with Kat that it is unlikely the Servo's are primarily doing the ripping.

Seems that when we have a Liberal government Business seem to think that they can charge whatever they like - and Do.

Dnarever wrote on Jan 8^th, 2014 at 7:38am:


Yes, I remember with great fondness the low, low, low fuel prices under  Rudd/ Gillard...

Quote:


Go Dave...

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I don't think Dave knows much about hipsters and their spending habits, it's not on SUVs or 4 WDs. 

longlosers solution to rising fuel costs is to get another job that pays more LOL