NRMA Motoring Blog

ACCC petrol commissioner Pat Walker last week revealed Coles Express service stations are the most expensive.

According to the Australian Competition and Consumer Commission’s survey, Coles Express had the highest petrol prices in Sydney, Melbourne, Brisbane and Adelaide. Mr Walker said the commission had identified about 30 Coles Express sites in Sydney that were selling petrol for 155.9 cents a litre, when the average price was 143.3 cents a litre. According to News.com.au, Coles was selling petrol in Melbourne for up to 14 cents more than the city’s average.

Mr Walker advised motorists to shop around for the best price, as those who use shopper dockets may not be getting the discount they think they are.

“It is important that consumers do not automatically rely on their petrol discount voucher to necessarily deliver the lowest price,” he said.

NRMA President Alan Evans said, “The Petrol Commissioner has done well to catch and shame Coles for their over-pricing; he now needs the powers to do something about it.”

Mr Evans said that bad press alone is not enough, as oil companies have grown immune to it. He believes the Commissioner’s powers must therefore be extended so he can:

• • Force oil companies to drop their prices when they are over-inflated;
• • Force oil companies to artificially keep their prices down to compensate motorists who have been over-charged;
• • Fine oil companies.

Have you noticed some service stations regularly being more expensive than others?

As recently as six months ago, one of the main incentives for buying a diesel vehicle was the perceived savings on fuel compared to a vehicle using unleaded petrol. But now it’s not uncommon to see the price of diesel up to 25 cents more than regular unleaded, leaving many owners of private diesel vehicles wondering if it was all worth it.

Several factors have contributed to the diesel price rise.

The main reason for diesel being consistently more expensive than standard unleaded petrol is that most diesel is sold under contract to fleet operators, mainly for heavy vehicles. This means the volume sold at your local service station is low, leaving retailers little incentive to discount.

Also previous Government regulations allowed diesel to contain 500 particles per million of sulphur. This has recently been adjusted to allow only 50ppm resulting in the production costs of diesel and unleaded petrol being quite similar.

Diesel prices are also kept high by demand in Asia, where most transport uses diesel.

Many Australians holidaying in New Zealand come back wondering why diesel is significantly cheaper there than it is here. However, Trans-Tasman diesel prices cannot be compared, as diesel in NZ is not taxed at the point of sale. Rather, diesel vehicle owners are required to pay a Road User Charge (RUC) in distance travelled slots, making the actual cost of the journey much more expensive than it appears at the bowser.

Manufacturers and the Government may be pushing diesel as a ‘green’ alternative to petrol, but owners and potential buyers are probably questioning if diesel is indeed a fuel of the future.

What are your experiences with buying diesel? Do you still find it worth the money, despite the recent price rises?

Over the past four years ethanol has been making its way to our fuel distributors, being sold as E10. It is a colourless alcohol, the same as in alcoholic drinks and is manufactured from grain or sugar. The CSIRO has calculated that an E10 blend cuts overall greenhouse emissions by around 3 per cent. However it’s more costly than petrol to produce and requires special storage facilities. Testing shows that fuel consumption increases by 3-4 per cent when using an E10 blend.

10 per cent ethanol mixed with petrol should not affect the majority of vehicles on our roads. The motor industry’s website advises which cars can use E10, E5 or no ethanol at all. All vehicles manufactured before 1986 are recommended not to use ethanol.

Ethanol is currently rebated at the normal fuel excise, but the rebate will be phased out over 5 years from 2011, by which time the industry is expected to have reduced the costs of production.

What’s your experience with E10? Is your car cheaper to run overall and has E10 had any effect – good or not so good – on your car’s performance or reliability?