Servos profiteering from pandemic

Fuel service station helmet profiteering

The shocking fuel price rise in some cities over the past few days despite the OPEC glut and subsequent 20% reduction in oil prices is nothing more than profiteering from the pandemic.

Around the world fuel prices are dropping to 17-year lows, yet in some parts of Australia, prices are rising.

In Adelaide prices are now below $1/litre for 91RON, yet Brisbane have risen more than 40c in the past two days to almost $160. Prices for PULP are almost $180.

In Sydney, the average ULP price is $134 and in Melbourne it’s $126.

Oil price war

Russia and the Organisation of the Petroleum Exporting Countries (OPEC) act as a cartel to control oil supply to determine prices.

Earlier this month, they fell out when Saudi Arabia wanted to keep production artificially low.

Fearing the market would open up for US producers, Russia walked out of the meeting and the Saudis responded by launching a price war that has driven crude and refined oil down by more than 20%.

Treasurer Josh Frydenberg told the Australian Competition and Consumer Commission to ensure petrol retailers pass on the price reductions.

ACCC boss Rod Sims said they would “name and shame” petrol retailers who gouge prices.

However, that is not good enough. Fuel companies have no shame, anyway!

During this coronavirus crisis, many workers are being stood down and are struggling to meet basic requirements such as house repayments, let alone inflated fuel costs.

The federal and/or state governments should be able to enact laws in a time of crisis to stop profiteering. They could extend it to toilet paper hoarders!

The federal government is waiving fuel excise for airline operators, so maybe they can also do the same for motorists.Fuel petrol servo service station helmet pulp ulp premium profiteering

Profiteering

Some may say that fuel won’t be in high demand during the pandemic because people will not be going out as much.

However, that does not give fuel companies the right to gouge prices for those who need fuel such as emergency workers, nurses, police, transport operators, etc.

Also, what about those who stay home and need to do some motorcycle stunts in their house to stave off boredom while in isolation!

4 Comments

  1. I’m going to play devils advocate here.

    The price of oil at the time of the current petrol at the bowser was likely higher than it is now. Therefore the price of the petrol is higher than it will be in the future. Since I cant express myself well… Example
    Lets say in december 2019 the oil price was 90 dollars a barrel. The petrol refined from that barrel is now at the bowser. The oil price now is 30 dollars. That does not mean the petrol made from the 90 dollar barrel should now cost 1/3rd the price.

    That said. If in 3 months we arent paying 80 cents a litre then it is time to riot! ( currently as of this comment the oil price is the same as it was in 2002 where we were paying 87 cents a litre in QLD )

    No I do not work for an oil company but have an open mind to the notion of supply and demand.

  2. blatant profiteering at a time of national crisis. Fuel prices in WA and SA heading under $1, last two days in Sydney over $1.50. When will the PM introduce legislation to stop this,maybe too much fuel compant donations to election campaigns?

  3. Over the years the price differential between 91 and 95 RON has crept up and was typically about 13c difference up to early 2020.
    A little while ago, the price of 95RON suddenly jumped to 17c more than 91RON at many Caltex service stations.

    Price gouging or preparation for t he ultimate demise of 91RON petrol ??

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