Fuel Price

I don’t understand how fuel is priced.

Last week I took a drive up to Toowoomba and before I left I grabbed some fuel on the Gold Coast at $1.42 for standard unleaded. As I drove towards Brisbane, the price remained fairly similar.

As soon as I got to the western side of the Logan Motorway, less than 100Km from the Gold Coast – the fuel price started to fluctuate by 2-3c per litre.

By the time I made my way into the Gatton area, the fuel price had dropped by a further 2-3c per litre. As I neared the bottom of the range at Toowoomba, the price continued to fall and when returning home I picked up fuel for $1.28 per litre, a whole $0.14 per litre cheaper than I paid on the Gold Coast a few hours earlier.

Now I’d assume that there is a cost to the fuel companies to distribute their fuel around the country. I also assume, though I could be completely wrong, that the fuel processing takes place in or near capital cities. As such, it would see logical to me that the price to distribute a litre of fuel to the Gold Coast would be less than trucking it approximately 200Km west to Toowoomba and climbing over 1000m mountain.

Today I got fuel at a BP service centre, one of the big ones that sits off to the side of a motorway. On a Saturday, surely one of their highest load days of the week – every tank and bowser was conveniently out of unleaded. The difference between 91RON and 95RON, a handy 14c per litre.

Just try and convince me that the oil companies aren’t gouging the Australian public for every dollar.

6 thoughts on “Fuel Price

  1. Indeed these companies are Al.

    I remember this fuel scandal from years ago (when I lived there) and the OUT OF ORDER sign being posted on all the unleaded bowsers. I have used them inspite of this sign and never had a problem.

    As for the cheaper fuel in the Lockyer Valley, I believe it is just an enticement & nothing to do with the cost of acquisition. Companies on the Gold Coast charge a premium and those smaller ones in the Lockyer Valley are charging less to make sure they gain more customers from transient traffic.

    $1.42 AUD you paid for fuel, I have to pay €1.55 here for mine. My thirsty BMW 745i Guzzles a whopping 20l/100km for city driving and costs around 130 Euros to fill. Ouch.

  2. I think you need to upgrade to a BMW 760Li, they pack a 6L V12 with 400Kw/750Nm but BMW say they do 18.9L/100km city driving and 9.6L/100km on the highway. You get a tidy 5% saving on fuel – fantastic!

  3. maybe we should develope some stick on posters headed up UNLEADED $1.42, UP THE ROAD $1.28, GO FOR IT.! THAT WOULD MAKE A STIR.

  4. I did look at the mighty 760 Al, was a bit out of my price range on insurance. I would have had to pay something in the order of A$6000 per year – which was a bit tough to swallow. Also, I am a bit skeptical of the highway figures. Remember here that there are no speed limits and average Autobahn speed is 160 -180 kph. I would like to know at what speed they recorded the 9L/100KM.

  5. Wow, $6000/yr is insane – I complain about having to pay $500/yr! On the fuel front, they don’t state anywhere how they came to the 9L figure that I can see – could have been in top gear at 80Kph on a decline for all we know.

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