DAIRY factories traditionally focused on milk prices have become south-west market leaders in fuel sales.
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Warrnambool Cheese and Butter’s bowsers at Allansford Cheese World and Murray Goulburn Trading’s pumps at Koroit have been undercutting Warrnambool outlets for weeks as global oil prices continue to fall.
Unleaded petrol hit a new south-west low of 108 cents a litre this week at Allansford Cheese World, and four cents higher in Koroit.
In Warrnambool it ranged from about 120.9c/l to about 125.9c/l.
Meanwhile, in Melbourne it has fallen to 99 c/l and in Geelong about 110c/l.
Prices are expected to fall even further by the weekend.
A Devondale Murray Goulburn spokeswoman said the company was focused on reducing costs and increasing the profitability of farmers through products and services on offer.
“Competitively priced fuel is just one example of how MG is keeping costs down on essential items in regional communities like Koroit,” she said.
Warrnambool Cheese and Butter did not respond to The Standard’s request for comment.
The Australian Competition and Consumer Commission has tightened its monitoring of the disparity between metropolitan and country fuel prices with a regular watch list of 180 centres including Warrnambool, Hamilton, Portland and Colac. Three centres will be chosen from the list for more in-depth investigations, including freight costs and profit margins and alleged market collusion.
Prices have been slower to fall in rural areas compared with metropolitan outlets, which have a higher throughput.
Motoring organisations including the RACV have urged drivers to shop around and put pressure on retailers.
The ACCC will produce at least four market studies a year, which will include analysing the main factors of petrol prices in particular regional markets.
It will announce the first of the three micro-study locations in March and will report progressively through the year.
Great South Coast group chairman and Moyne Shire mayor Colin Ryan urged retailers to heed the advice from authorities and give rural motorists a better deal.