COUNTRY motorists are being ripped off by the big fuel companies, according to NRMA price comparisons, which show declines in fuel prices at the bowser in the big cities have been disproportionately ahead of those in the bush.
NRMA spokesman Peter Khoury said the pump price “should be driven by global factors”, but a lack of competition in regional and rural areas, particularly in the form of independent retailers, was producing “ridiculous” discrepancies in price.
“It’s the independents that are constantly putting downward pressure on prices. Without that competition oil companies can largely do what they want, and that is what we are seeing.”
While Sydney and Melbourne have “got the full benefit of the drop”, Geoff Trotter, of independent monitor FuelTrac, said dealers in other areas had been “pocketing the difference”.
On Tuesday, NSW regional centres of Cooma and Woolgoolga tied for highest price at $1.44, according to the NRMA website.
“All that’s happened is that dealers out there have turned that 40c reduction in the whole price into an increase in their margin,” Mr Trotter said.
“This is a once-in-six-year opportunity for people to get a real cost-of-living reduction, but the only people getting the benefit are motorists in Sydney, Melbourne and Adelaide.”
Armidale was one rural town which had seen prices decline, but unfortunately this was not due to the oil price.
The threat of an Australian Competition and Consumer Commission investigation in October saw an immediate reduction at some service stations, and with the latest figures, the city is now in line with its closest regional centre, Tamworth.
On Tuesday, fuel prices at Armidale averaged 133.4 cents per litre for unleaded petrol, and diesel cost 135.9c/L.
In Tamworth, the average price for unleaded fuel was 134c/L and 138c/L for diesel.
In early October, Armidale residents were paying up to 163.9c/L, with those prices dropping by the end of the month following a push for more competition by Nor-thern Tablelands Nationals MP Adam Marshall.
Michael Smith and Kathy Betts, who operate Waterfall-way Couriers, haven’t purchased fuel in Armidale for years.
The Armidale-based business runs a daily service between Coffs Harbour and Armidale, with both vans filling up at Dorrigo. The vans use about $150 worth of fuel each day.
“We go to Dorrigo on the way home which gets us to Armidale and back to Coffs Harbour and then Dorrigo before we have to fill up,” Ms Betts said.
“I spoke to local retailers when I first started the business 11 years ago and nobody was interested in giving me a couple of cents off per litre when I was travelling every day and would have been a regular client.
“I’d prefer to fuel locally, and if they looked after us at Armidale we’d look after them but Dorrigo has been the cheapest and most accommodating.”
Mr Smith said he was currently paying 121c/L for fuel at Dorrigo, making it much cheaper than Armidale.
Several analysts are forecasting further falls in oil prices, as international benchmark Brent crude dropped to $US46.12 a barrel by late trading on Tuesday.
The six-year-low prices meant petrol prices in Sydney and Melbourne have dropped more than 40 cents a litre since July.
The price of unleaded petrol on Tuesday hit an average of $1.09 in Sydney and $1.10 in Melbourne.
Oil price cheer
DIESEL has dropped almost 30 cents a litre in Coonamble, and farmers are making the most of the cheap fuel while they can.
“The fall is good for people like my neighbours who are doing some clearing, and we’ve got a lot of earth-moving to do at our place,” said Rodney Day, “Sperwood”, Coonamble.
The diesel price has gone from 169.9 to 141.9 in about a month, but Mr Day was not confident of it remaining cheap for long.
“I hope it lasts a long, long time...(but) it’s not going to last.”
Local contract farmer Robert Thomas was also happy with the cheaper fuel, but lamented the inconsistency in pricing around the State.
“I can’t see why we can’t keep up with Sydney prices...or even other places.”
Mr Thomas also does some trucking, and said diesel being 30 cents cheaper per litre was saving him hundreds of dollars each time he filled the trucks.
- RODERICK MAKIM
