Why is it that you fuel up one day, and the next, fuel is 10cents cheaper? It’s almost as upsetting as buying a full priced item at your favourite retailer and the next day, it’s 50% off.
There are many contributing factors as to why this is the case, but the most common factor is dependant on the price of oil.
Just recently The Australian Competition and Consumer Commission (ACCC) released a report covering the prices, costs and profits of unleaded petrol and found a number of reasons for differences in price points around the country.
Another factor includes supply and demand, when an oversupply occurs in oil, savings are generally passed on though the prices of petrol.
The strength of the local currency can affect the price of petrol, prices for petrol, diesel and LPG are priced in US dollars. If the Australian dollar is higher than the US dollar, prices will stick around the same, if the US dollar is stronger it can push prices back up.
Because there is more demand in busier areas such as cities like Melbourne, regional or rural areas will generally pay more due to the competition of the local market and less demand.