Shell Petrol Prices Exorbitant Compared to the Market

LIvan Krazy on 08/07/2017 - 18:18
Last edited 08/07/2017 - 18:18

For the 4 days or so I have been keeping an eye on the petrol prices in Melbourne. Shell charges are way more than the current market prices for fuel. For example, shell charges 132.9 for unleaded 91. Across the road is united and Caltex and they charge 110.3 (mind you these prices were there for the last 3 days at least). Gas and other fuel types are also cheaper with united and Caltex. Other shell petrol stations in other areas are all overpriced in comparison to other fuel stations. Heck even BP is way cheaper then shell. What really kills me is to see people there accepting getting ripped off (might be the Ozbargain in me).

Why does Shell decide to continue charging consumers the overpriced figures and isn't this regulated?

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Comments

  • spackbace on 08/07/2017 - 18:23
    +19

    Why does Shell decide to continue charging consumers the overpriced figures and isn't this regulated?

    Regulation? In the petrol industry? 😂😂

    Ah thanks I needed a laugh!

    At the end of the day, what does it matter? Just simply go where it's cheaper

    • Ivan Krazy on 08/07/2017 - 18:27

      Yeah I know I don't go there. Don't think there is such thing as 'premium fuel' anyway!

    • HeWhoKnows on 09/07/2017 - 17:58

      OP does not appreciate choice

  • Riczter on 08/07/2017 - 18:30
    +6

    Same in WA, Coles Express/Shell always more expensive than everyone else.

  • [Deactivated] on 08/07/2017 - 18:43
    +3

    What really kills me is to see people there accepting getting ripped off

    I always assume those people have a company issued shell fuel card so don't have a choice and probably don't give a sh!te either

    • Rohangiga on 10/07/2017 - 02:36

      I drive near an army training base in Melbourne and there is a Shell right next to it (busy road) and it always has very high prices. I've always assumed its because all the army cars and all fill up there and they arnt the ones paying it so they dont give a shit so Shell ups the price

  • Architectonic on 08/07/2017 - 18:44
    +9

    I've noticed this too, even with the Coles discounts it's still more expensive.

    I haven't purchased petroleum at Shell for a long time as a result.

  • retiredfeline on 08/07/2017 - 18:53
    -1

    Why does Shell decide to continue charging consumers the overpriced figures and isn't this regulated?

    Call in the bikies!

    • [Deactivated] on 10/07/2017 - 06:17
      +1

      They don't fill up at Shell.

  • whooah1979 on 08/07/2017 - 18:53

    we can thank the federal government for the price.
    http://www.aph.gov.au/About_Parliament/Parliamentary_Departm…

  • whooah1979 on 08/07/2017 - 18:56
    +2

    regulated

    why? would you like the federal government to charge more taxes on fuel?

  • tomclancy on 08/07/2017 - 19:22
    +2

    You answered your own question before you asked it:

    Q: Why does Shell decide to continue charging consumers the overpriced figures

    A: people there accepting getting ripped off

    • retiredfeline on 08/07/2017 - 19:38
      +1

      Behind paywall.

      • RockyRaccoon on 08/07/2017 - 22:17
        +1

        Just google

        viva energy charging

        Then you can scroll down and read the article by clicking the HS link, paywall is bypassed

  • Savas on 08/07/2017 - 20:51
    +3

    Even Costco fuel isn't as cheap as Caltex with all the discounts.

    • veej on 08/07/2017 - 21:05
      +1

      I wish Caltex where I live was cheap, I live in a price gouging area where the average price is a $1.30 at Caltex, United, and BP while places twenty minutes up the road change around $1.15.

    • supaderp on 10/07/2017 - 12:21
      +3

      Maybe on single days but if you take a yearly average of costco fuel prices, Costco wins.

      • Ametric on 10/07/2017 - 14:00
        +1

        100% agree, no doubt Costco wins.

    • ahly92 on 10/07/2017 - 17:19
      +1

      Filled up at Costco morrabin for 104.7 yesterday…cheapest I've seen it

  • amkssg on 08/07/2017 - 23:33
    +1

    Just to point out a seemingly obvious fact.
    The Woolies and Caltex partnership is ending, with BP being the new partner.
    I foresee BP raising their prices to match those of Coles Express/Shell, which would the the Colesworth 4c dockets virtually worthless.

  • MelbBargainChaser77 on 09/07/2017 - 05:02
    +3

    Shell/Coles express hasnt been competitive for at least 18 months. Always at least 4c per litre more expensive. Tonight I got my fuel from woolworths at 107.9 in Melbourne, right across the road Coles Express was 132.9. What astounded me more was that there was 5 cars filling up at Coles and only 3 at WW. If (profanity) continue to support them just to get there flybuys then coles will continue to not be competitive. Or maybe all 5 were corporate card customers with someone else paying the bill and not giving a shit about the price. Gas was 74.9 at coles and 62.9 at WW

    • ade on 09/07/2017 - 09:03
      +1

      Maybe they were buying the $0.80 coffees?

  • ade on 09/07/2017 - 08:40
    +3

    Viva Energy (read Vitol and an investment firm) are looking to be a premium supplier (like BP) consequently they look at margin and not volume, a lot of which is driven by their corporate fuel cards. They are in the game for 15 years and need to make as large a margin as possible to fund the cost of buying the Shell licence as well as modernise the Shell retail network operations …underinvested in for many years.

  • Mad Max on 09/07/2017 - 09:10
    +3

    Coles Express has been the most expensive for some time now.
    And to make things worse now you cannot convert the 5% discounted coles egift cards into coles group (including coles express, 1st choice, liquorland, kmart, etc) because they have upgraded all checkout systems.
    So they are not only going to lose the fuel business but also the alcohol business as Dan Murphy matches any 1st choice price and can be paid with 5% discounted ewish cards.

    • Ivan Krazy on 09/07/2017 - 10:38

      Spot on! I always use the ewish gift card for petrol. 5% off extra savings plus can get 4 cents off a litre too :) win-win.

  • cloudy on 09/07/2017 - 10:23
    +2

    I read that Coles/shell charge more because they know people will go there anyway and use their 4c vouchers when they were doing better than woolies on the supermarket front. It was a reserve kinda of subsidizing of lowering groceries prices and then ripping people back off in petrol.

  • doctordv8 on 09/07/2017 - 10:53

    You asked: Why does Shell decide to continue charging consumers the overpriced figures and isn't this regulated?

    As told by Shell Exec when I was with Shell a while ago. "We set the fuel price to the maximum that the market can bare!

    It is my store, my product & I will sell whatever, whenever & however within the Law, only regulation is max sell price."

    Privately no one forces us to buy any product on any day from any supplier so go with your budget first and heart second.

    • Mad Max on 09/07/2017 - 12:48

      It is my store, my product & I will sell whatever, whenever & however within the Law, only regulation is max sell price."

      Even at max price there is a minimum of sales for the business to break even with all the costs.
      Business that operate like that are not usually around for a long time.
      In this case Coles may prop up a loss making Coles Express for some time, but not for ever. Shareholders would not be too happy…

    • ade on 11/07/2017 - 08:39

      Remember Shell don't own the licence for another 15 years. However due to their bad attitude and desire to under invest in the business it made it a requirement for Viva Energy to maintain margin to re invest in the business once they acquired the retail outlets Also interesting that they are investing a lot of money in IT (which consumers will have to pay for) which will be thrown away very soon as the selected system (JDE) really is not fir for purpose as is also contrary to what the rest of mother "Vitol" is installing.

  • nubzy on 09/07/2017 - 10:56

    I only go to 7-11. Saved $11 off pump price yesterday which all the mugs were paying happily.. can't beat it..

  • HeWhoKnows on 09/07/2017 - 17:57
    +4

    Why even ask the question? Go and pay whatever price you want. Most OBs here would just pay the lowest price but not everyone.

    By the way. To answer OPs question this is an indication that the price cycle has ended and ALL prices will be UP in the next day or 2. Time to fill up your car - BE QUICK!

  • HeWhoKnows on 09/07/2017 - 18:00

    On the regulation question whenever the government gets involved prices ALWAYS go up!

  • shangoz on 09/07/2017 - 18:08

    Last Thursday 4:50pm Woolworthes/Caltex 102.7/L, 5:30pm it jump to 131.9/L, regulation? who donate the party all the fund for election? most of the time 1.5 weeks under 104.9/L, then 2 to 2.5weeks 131.9/L while Internation oil price continut going down, the rich tycoon and politician just want to get your last dollar from Electricity rise, Gas rise, Petrol rise, then Wgae fronzen or even downhill!

  • smartazz104 on 09/07/2017 - 20:59

    Someone probably called Shell and said "here are the details for the end of cycle price rise", problem is it was someone from one of the rival stations instead of head office so Shells all over have been effectively bamboozled /s

  • Gomo on 09/07/2017 - 21:41

    In Queensland you can obtain petrol from 7/11 for $1.01 :D

  • Seaeagles on 09/07/2017 - 22:32

    People go to Shell because they save 4c a litre even though it's more expensive.
    I only use BP98 because the tuner that tuned my WRX said the car will run better on it. The BP I use is opposite a Shell and I have noticed the Shell is usually a minimum 7 cents dearer …….. so much for being cheaper with discount.
    Ever since Coles/Woolworths got involved with fuel we have been ripped off more than ever.

  • DonWilson on 09/07/2017 - 23:40
    +2

    The only times I've ever seen those kind of differences ($1.10 vs $1.30) is on the day prices drop. You know the day, the day that shifts randomly every few years but right now in Perth is generally Sunday or Monday. The day where after ~6 days of gradual increases everyone drops 20c off the price for some reason only to gradually increase it again.

    Otherwise Shell is always competitive in my area. With the other big players like Caltex and BP, at least. Not with Puma which is the major "independent" brand in WA, which is almost always 2-8c lower than the big guys. Plus they have a deal with RAC (not RACV) where if you show your member card you get that 4c/L discount.

    But Shell? No. They seem on par with Caltex/BP.

    My name's Dan Wilson. I run Iowa's largest wildlife preserve.

    • [Deactivated] on 10/07/2017 - 06:07

      My name's Dan Wilson

      But username is Don. I see what you did there

      • DonWilson on 10/07/2017 - 17:08

        Hey yeah this number used to be for a video thing? I got a… I got a video from you guys it's called Dawg Sitter. It gave me a great idea.

    • [Deactivated] on 10/07/2017 - 06:22

      My name's Dan Wilson. I run Iowa's largest wildlife preserve.

      If that's true, then I am biggest Jackass Penguin riding the public transport today.

      • DonWilson on 10/07/2017 - 17:09

        Ya see I run Iowa's largest wildlife preserve. And I want to produce a video for giraaaaafes.

  • puppy singh on 10/07/2017 - 07:56
    -1

    It's actually coles that sets the retail price, not Shell

    • ade on 12/07/2017 - 09:10

      I am afraid it is Viva Energy, not even Shell

  • htc on 10/07/2017 - 09:14

    When I do shopping, I will get over 30 in woolworths to get 4c discount as woolies petrol cheaper than she'll. If special is on on coles I will not try hard to get over 30. Shell is too expensive. My petrol station that I used is woolies, 7 eleven and caltex. There is petrol all that I used to monitor price.

  • htc on 10/07/2017 - 09:15
    +1

    Interesting to note all shell are coles while not all caltex are woolies.

  • godzilla123 on 10/07/2017 - 10:06
    +2

    haha I think OP just happened to compare at the end/start of the pricing cycle i.e Shell had already increased while Caltex had not. If you were to compare the two today I'm guessing Shell would be around 3-4c higher which is what I have observed(i.e Shell always 3-4c higher than others).

  • Cluster on 10/07/2017 - 11:22
    +1

    If you think Coles Express petrol prices are bad, try comparing diesel. In Adelaide on the day I purchased diesel at 105.9c, Coles was selling it for 131.9.

    I think it's actually quite good that Coles chooses to price itself out of the market like this. It gives consumers choice, unless you're unlucky enough to only have a Coles station in your town. If people want to be lazy and pay 20% more then good on them.

    Looking at it another way, when prices were the same between all stations and moved in lock step with one another, people cried out that it was evidence of price collusion and Big Oil screwing people over.

  • Wallyt99 on 10/07/2017 - 11:22

    Shell also has a greater difference in its 91/95/98. E.g BP its roughly +7/+14 Shell it can be +14/+23

  • Cluster on 10/07/2017 - 11:26
    +3

    http://www.heraldsun.com.au/business/coles-feels-petrol-pinc…

    "COLES has pointed the finger at its petrol supplier, Viva ­Energy, for lifting the prices it charges the supermarket heavyweight following a 20 per cent plunge in fuel sales."

    Mortimer! Our fuel sales have fallen 20%! What are we going to do to restore profitability?

    Why Clarence old chum, the answer is obvious. We'll just raise prices by 20%, and recover all the lost profit! We cannot lose!

  • Piranha2004 on 10/07/2017 - 12:41

    Shells in SE Melbourne are always 4c more expensive than BP/Caltex/Others. The price hike you are referring to is due to the end of cycle vs new cycle pricing. I was able to fill up at 108.9 while all the other servos upped the price to 132+.

    • ade on 12/07/2017 - 09:13

      Once you see Viva Energy put up their prices you know that the rest will follow a day or so later…time to fill up.

  • payless69 on 10/07/2017 - 13:38

    Shell unleaded 91 is the only fuel that makes my Corolla ping! That is got to be worth something…

  • tipidmode on 10/07/2017 - 18:35

    I agree. Shell petrol prices are ridiculous. But one thing I noticed when using their petrol is it goes a long way compared to others. I think I save fuel when using their petrol. And also I find the engine runs smoother and more responsive.

    • ade on 12/07/2017 - 09:08
      +1

      Petrol in an area usually comes from the same refinery …. so very little difference between brands.

  • bs0 on 11/07/2017 - 09:32

    Also noticed this in Sydney, but more so a difference between suburbs on the same day (prices are the same when i leave in the morning to when I past on the way home).
    The Hills (castle hills, baulkham hills etc): - ~125c
    vs.
    Anywhere along parramatta road to city: ~105c
    +20c difference is massive…

    • amkssg on 11/07/2017 - 12:57

      They are on opposite ends of the cycle.
      In a few days, you will see the hills prices start to drop while prices elsewhere will shoot up to 127.9c

      There is about 4 to 7 days difference as to when the "price jump" occurs across different suburbs.

      Therefore, the smart thing to do is to watch for the "price jump". Once the price in the Hills district jumps to the max, immediately pump the next day in the city as the prices will be at the lowest.

      • bs0 on 12/07/2017 - 03:25

        I'll have to try that. But I've also noticed the hills area is consistently cycling higher (~110-130) than along Parramatta road (100-115). Also noticed there's heaps more independent stations along Parramatta rd than in the hills.

  • Capo93 on 20/01/2019 - 11:50
    Merged from Why Is Shell Coles Express Fuel Always So Much More Expensive Then Other Stations?

    It's always baffled me why Coles fuel is always so much more, for example I stopped to get Diesel yesterday at a Coles station and it was 174.9 per liter, my jaw dropped because in my area fuel has been pretty cheap lately. The only reason I fill up at Coles is because I have company car/motor pass card and get 8 Flybuys points per liter, other then that I wouldn't touch them but you always see people getting fuel from them.

    On the same street as this Coles within 1km is a BP which their diesel was 133.9 per liter and a Caltex that was 141.9 per liter, all three of these sites are premium diesel.

    Thoughts?

    Edit: For anyone wondering I’m in the Wollongong area of NSW.

    Edit: Although the docket says bonus points are excluded when payment method is with a fuel card, here is proof it works
    https://ibb.co/G9KxRmr
    https://ibb.co/SvZpv4Y
    https://ibb.co/mBx1y79

    • bobbified on 20/01/2019 - 12:01
      +1

      Because they jacked the price up to at least factor in the Coles shopping discount vouchers.

      • Capo93 on 20/01/2019 - 12:07
        +2

        But Woolworth's pretty much offer the same discount and they don't jack like Coles.

        • bobbified on 20/01/2019 - 12:09
          +6

          Woolworths market research probably suggests ripping us off in less obvious ways.

    • [Deactivated] on 20/01/2019 - 12:39
      +1

      Coles admitted recently that they do charge more than other petrol stations for fuel. I think it has something to do with a dispute between them and the supplier of the fuel. It also has something to do with their Coles Express business model which means they concentrate on other services apart from fuel. I haven't done a google search on the matter but I'm sure you can find the relevant articles with a quick search.

      • Baysew on 20/01/2019 - 13:28
        +5

        Coles in petrol price squeeze as Viva holds whip hand in price negotiations, says BAML analyst

        The big two supermarkets are typically in a position to set margins for supplier sales which means the likes of Coca Cola, Arnotts and Lion take the price set by the supermarkets.

        The difference here is that the supplier sets the margin and Coles, which controls the retail price, can adjust prices to set its margin from the fixed wholesale prices.

        When Viva increased its margins, Coles simply increased its prices but that meant its prices were six cents a litre above the market and volumes fell from 93 million litres a week in 2016 to 65 million at present.

      • ravennoir on 21/01/2019 - 07:25

        Coles control the price of the fuel after they buy it from the supplier. It is the same as why Coke is cheaper from the supermarkets compared to buying directly from coke, that's why alot of small businesses send a bunch of people to buy cases at a time to stock their own shelves.

        Coles believes that they can force the petrol supplier to drop the prices they are charging them for fuel, they same way they do with all their other suppliers.

        There are "non Coles" Shell stations, comparing these you can see that it's only Coles trying to oust the price up

    • zonra on 20/01/2019 - 12:42

      Yep, baffles me too.
      People choose to go there, then b!tch and whine about it.
      Just go to whichever one you like and be done with it.

      Edit: These are my uneducated opinions:
      People who go there are:
      - Fleet card users
      - Tradies who don’t give two sh*t about fuel prices
      - Coles shoppers who want to utilise their docket vouchers, and
      - the other 80% who, as per my previous comment, choose to go there for convenience but b!tch about it at the same time.

      Also, Coles Express business model emphasizes its profit on shop sales, not fuel sales (which is peanuts in relative).
      Therefore, making a point of refusing to get fuel there but still coming to buy the odd pack of lollies, drinks or ciggies is not exactly hurting them in any conceivable way, it’s actually the contrary.
      Personally I go to the first station I see when I need fuel, then again I rearely run on low because I always fill up on cheap days (every 2-3 weeks). It’s funny how peope spend $5 on a can of Redbull (that they can get a 4 pack for cheaper at the supermarkets) without blinking yet acts like it’s the end of the world when fuel costs a couple of bucks more per tank.

      • Capo93 on 20/01/2019 - 13:01
        +2

        I'm not bitching, it just baffles me. When I had my own car I would never get fuel from Coles, its just when I'm not paying for it I'll take the Flybuy points for myself.

      • Hybroid on 20/01/2019 - 13:31

        Well there's also people that don't really care enough. For an average 50L vehicle fill-up where Coles is 5-10c/L more expensive, that's $2.50-$5.00 difference. Barely enough for a coffee.

        • BigBirdy on 21/01/2019 - 10:18

          Coffee is 80c in Coles Express. My local (regional Qld) Coles Express fuel is often 16-20c/L higher than the cheapest local servo. 50L = $10 savings, or 12 cups of Coles coffee

    • Hybroid on 20/01/2019 - 12:43

      They're generally 5c/L more expensive than others in Sydney CBD (METRO always being the cheapest). You'd think Coles would be cheapest to entice you into the shop to spend more but there you go.

      Having said that, you can get 24c/L* off at Shell/Coles Express which makes them the cheapest overall though. Ideal for 150L fill-ups.

      • 4c/L off with Coles shop receipt.
      • 10c/L off with Flybuys app offer
      • 10c/L off with $20 shop purchase (say 2x$10 Quilton toilet rolls)

      Edit: Just realised this applies to petrol only which may not help you if filling diesel.

    • altomic on 20/01/2019 - 12:53

      There are 2 servos near me Coles and BP.

      The BP is always more expensive than Coles.

    • kusama on 20/01/2019 - 13:02
      +1

      Coles seem to be the first to raise prices, so when I see them do that I know to fill up else where before the others go up.

    • s313 on 20/01/2019 - 13:04

      coles- made in Australia..

    • AdosHouse on 20/01/2019 - 13:19

      The Coles Express near me is always about 10-15c/L more than the 7-Eleven about 300m down the road.

    • Hithere on 20/01/2019 - 13:25
      +1

      Coles have been 15c a litre dearer in my area but people still buy fuel there to "save" their 4c a litre, obviously not Ozbargain members.

      From what I've heard they are selling a lot less fuel than they used to but their profit margin is now so large they are actually making more money by selling less fuel at exorbitant prices than if they sold it at the same price as other brands.

    • [Deactivated] on 20/01/2019 - 13:30
      +1

      Free range fossils.

    • indium on 20/01/2019 - 13:54

      They are always the first to hike prices at the end of the fuel cycle, alerts me it's nearly time to lock in at 7/11, yet still see people buying fuel for 30c more per litre than what they could get down the road

    • [Deactivated] on 20/01/2019 - 15:09
      +2

      Curtis Stone charges for his adverts in USD.

    • Flying Ace on 20/01/2019 - 16:24
      +1

      Sunshine Coast QLD - Coles Express regularly 20-40c more expensive than everyone else.

    • Kurohayabusa on 20/01/2019 - 18:15

      I only go if I have a 10c off flybuys offer and a 4c off docket voucher. Even then I'll check prices online, because sometimes woolies caltex is still cheaper

    • Stewardo on 20/01/2019 - 18:50

      I didn’t know it was 8 points litre with Motorpass,
      With shell card I only get 1 point per 2ltr.

      • Capo93 on 20/01/2019 - 21:10

        I shop at Coles for grocery shopping, you get the 4c per litre off on the bottom of the docket, the other option with that docket is 8 flybuys points per litre, you turn it on in your flybuys account, give them the docket to scan with your flybuys card and magic!

        • Stewardo on 20/01/2019 - 21:13

          I thought fuel cards were exempt from this deal?

          • Capo93 on 20/01/2019 - 21:34

            @Stewardo: I just took a photo of my fuel docket which it does say they are exempt but I also included a screen shot from my flybuys app which shows I got the points, interesting……..

            https://imgur.com/a/XeayryA

            • Stewardo on 20/01/2019 - 21:43

              @Capo93: That’s really interesting, i fill up with fuel card 3-4 times a week

              • Capo93 on 20/01/2019 - 23:39

                @Stewardo: Active 8 points in your app and give it a go and let me know

    • Tamtim on 20/01/2019 - 20:56

      I had a friend who would only fill up at Coles express (98 premium) - he said that was the best petrol, and would never go to any independents because he doesn't trust them. Don't know how true that is…

      • Capo93 on 20/01/2019 - 21:09

        To be honest, I’ve only ever had bad fuel once, it was about 6 months ago after some rain and it actually was from the Coles station I’m referring to in this post, had water in the diesel.

    • Goodiemite on 20/01/2019 - 21:17

      bcos they know there are lot of stupid people floating around

    • emaydedewhy on 20/01/2019 - 21:22

      Coles Express in my area has consistently been around 10c/L more expensive than the nearby competition and always the first to increase in price, however as of last week for some reason they dropped the price to the lowest in Sydney, and combined with the current 10c off flybys offer I just filled up for under $1/L… Unbelievable

    • DarkOz on 20/01/2019 - 21:28

      It's called Shell Cash Express for a reason. I don't go there anymore even with a 10 cent discount voucher.

    • x2r9ypbj on 21/01/2019 - 07:59

      IF YOU LIVE ON THE BELLARINE PENINSULA THERE ARE THREE COLES SUPERMARKETS AND NO COLES EXPRESS.
      IF YOU TRAVEL TO THE NEAREST COLES EXPRESS IT COST'S MORE IN FUEL THEN THE VOUCHER.
      I AM SICK OF ASKING COLES ABOUT A COLES EXPRESS ON THE PENINSULA ONE OF THE FASTEST GROWING
      AREAS IN AUSTRALIA.

      • terrys on 21/01/2019 - 08:08
        +4

        Have you tried not shouting at them?

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