PETROL prices in Warrnambool are where they should be despite being up to 10 cents a litre more expensive than Melbourne, the state’s peak motoring body says.
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Unleaded was selling for about $1.30 a litre in Warrnambool last week, while diesel was sitting around the $1.25 mark. But outlets in Allansford and Koroit were reportedly selling unleaded for much lower.
In Melbourne, unleaded was selling at $1.20 a litre on average, with the lowest price across the city at $1.10.
RACV’s Michael Case said it was difficult to make comparisons between Melbourne and regional areas, because the city was affected by a price cycle that could last up to two weeks.
“During that cycle it will get cheaper and cheaper until it bottoms out, then it will begin to rise again,” Mr Case said.
“This current cycle has lasted about four weeks and what we are seeing now is prices are starting to rise again.
“You don’t get that cycle in regional areas, prices generally stay steady with a few minor fluctuations.
“So it can be deceptive when you try and compare depending at what stage of the cycle the metropolitan area is in.”
He said Warrnambool’s prices “were about right” when taking into consideration transport costs.
“A difference of 10 to 12 cents a litre is reasonable, but when Melbourne is at the low end of the cycle, prices in regional areas can be 30 cents a litre higher,” he said.
“But when Melbourne is at the higher end of the cycle, prices in regional areas can be cheaper.”
Mr Case said in some regional areas unleaded was selling for an average price of $1.40 a litre, which was too high.
“Then at the other end of the scale, the average price in Ararat has been around $1.25. So Warrnambool is sitting somewhere in the middle,” he said.
He said if people were planning to travel to Melbourne in the next week it would pay to have a look at the RACV’s website and plan where to buy fuel.
“Don’t always assume petrol will always be cheaper in Melbourne or Geelong,” he said.
“Prices are trending up again now, so we expect a new cycle to begin early in the week, so prices will be high again.
“It’s worth looking at the website and looking at the regional towns along the way to figure out where to fill up.”
