Petrol Stations Price Gouging/Colluding

Hey. I thought I'd open this thread to discuss Aussie petrol stations ripping us off.

I don't know what it's like in other cities, but in Sydney we have obvious collusion between petrol stations. They follow an arbitrary "price cycle" whereby one day, a servo will decide to raise the price by 20c/L. All the other petrol stations soon follow. Over the next 2 or so weeks, they will slowly drop the price, until another servo decides to raise the price again. Price collusion is anti-competitive and illegal but unfortunately difficult to prove.

The only thing consumers can do to avoid this is to try and fill up from the cheaper servos. But even on the day the prices are raised, you'll see plenty of cars filling their cars up, encouraging the servos to keep ripping us off. These motorists are obviously not ozBargainers.

How do ozBargainers avoid paying too much for fuel?

Right now I quite like the app Petrol Spy which is a crowdsourced petrol app, where people report prices of servos around them. It's a great idea but unfortunately just not active enough. I try to regularly contribute and perhaps some of you should check it out too. I can see it being quite powerful to fighting the colluding servos.

I also like Motormouth's fuel search but unfortunately a lot of the smaller (and usually cheaper) independents aren't on it. Also, prices are only updated 5am every morning, meaning when some servos have started to raise their prices, you don't know if they've raised their price or not yet.

OzBargain shows us the power of a large number of tightarses, I wonder if we have any power to discourage the price-gouging behaviour.

This post isn't a whinge or complaint, it's a discussion on how we, as proud ozBargainers, can get the best deal possible.

Comments

  • +3

    You've just noticed this?
    It's been going on for well over a decade, if not two.

    • +1

      Of course I haven't just noticed. I'm talking about what we can do to get around it.

      • +2

        Buy petrol on the cheaper days.

        • Problem with that is that no one knows when the cheapest day is and when the price is going to go up/down. It would make sense if everyone knew where and when exactly the cycle is heading

        • +1

          @duxa:

          Here you go. They've even broken it down to each of the capital cities for you.

          https://www.accc.gov.au/consumers/petrol-diesel-lpg/petrol-p…

        • @Drew22: so when do I buy next to get the best price in Sydney? Is it going down to 132 and then up or should I wait a little longer for 125 like on 3rd of May? Or maybe it will shoot up to 146 straight from 134 without getting to 132?

        • @duxa:

          Looks at the trend and work it out yourself?
          Maybe invest in a time machine.

        • +1

          @duxa: You're never going to get it 100% accurate. After a while you'll be able to guess what is the likely bottom for the current cycle. Generally I prefer to buy before it hits bottom as a sudden jump will cost much more. Even when it jumps, you might be able to find another servo that hasn't followed the crowd in jacking up prices. Other risk factors leading to rises are weekend or holiday coming up.

          Distance also matters. You might spend more driving around to get the cheapest. So I try to schedule fills when I'm in the neighbourhood of favourite servos, even if it isn't the bottom of the cycle.

        • +1

          @duxa: like birth control… you gotta know when to pull out.

        • @sleepy120: Or have a good sense of rhythm. :)

  • +2

    I think most people really need to consider switching to public transport the minute petrol hits $1.50. An organised mass exodus from cars, enough to clog public transport and find a way to cap the gouging past a set limit.
    Obviously if you live too far away, you can't do much, but most of our trips are 30-60 minutes away and a large, organised boycott of petrol prices might be good enough to say that demand isn't high enough to launch profits into the $1.50 mark.
    If only there was someone willing to set up a movement and website of some sort.

  • +1

    god, blah blah blah, always one of these rants

    buy when its low, fill up all the way to the top

    ride out when its high with your full tank

    rinse repeat

    protip: stay away from colesworth stations

  • +1

    I've found this app somewhat helpful to give a general idea what prices are doing http://www.woolworthspetrol.com.au/our-products-and-services…
    It is only for Woolworths/Caltex, but have found it to be accurate in my area and when I have seen one station increase the price by 25cents on the app I have had time in the next 24hours to fill up at the low end before they all go up.

  • -2

    Following an established price cycle is not collusion

  • +1

    To find out what the servos cost to buy is goto
    http://www.aip.com.au/pricing/tgp/

    To look at the price cycle for your city goto
    https://www.accc.gov.au/consumers/petrol-diesel-lpg/petrol-p…

    I buy at the lowest point in the cycle, and fill two 20L fuel cans as well, at my local independent that offers a 4c discount if you buy more than 40L of fuel. This is enough to get me to the next lowest price day and I have never payed more than 2c above the terminal gate price for fuel…

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