Petrol price war fuels disparity at the pump

Adelaide petrol prices are varying by more than 25c a litre following a push by major retailers to end the record discount cycle.

Unleaded petrol prices at two service stations at the intersection of Magill and Portrush roads varied between 119.9c a litre and 95.9c a litre yesterday morning - a difference of $17 on the cost of filling the tank of a family sedan.

The RAA said three major retailers - Coles, Woolworths and On The Run - were increasing prices at selected service stations while other retailers were resisting a rise.

We are encouraging motorists to shop around

"A lot of motorists are unaware that wholesale petrol prices have increased in the past week and a half to 105c a litre - so a swing up to 119.9c is within the normal range of a price spike," RAA senior analyst Chris West said.

"We are encouraging motorists to shop around and fill up as three of the big four Adelaide retailers are raising prices."

Motorist Sue Ryan said she was surprised at the variation in unleaded prices while filling up at the cheaper Coles outlet at the junction of Magill and Portrush roads.

"I'm glad I can still cash in on the cheaper price," Ms Ryan, 47, said. "I drive between Clearview and Meningie a couple of times a week so the cheaper price is a big saving."

Mr West expects the next price dip as part of the discounting cycle will see prices fall to around the wholesale price and not below the $1 a litre available at many outlets for the past couple of weeks.

"We would love to say prices would fall to a similar price range but changes to oil prices will flow through to (higher) wholesale prices," he said.

Today's unleaded price is averaging 102.5c a litre, with the cheapest at 94.7c at Costco in Kilburn and the dearest at 119.9c a litre at various outlets.

You could see petrol prices continue within this price range

Mr West expects the oil price will stabilise and provide petrol prices at the lower end of the $1 a litre range in the longer term compared to the $1.50 paid late last year.

"It is hard to forecast a return to $1.50 a litre because of the dynamics of the oil market," he said. "But if the Saudi Arabians continue to maintain market share you could see petrol prices continue within this price range."

DISPARITY AT THE PETROL PUMP

Cost of unleaded petrol across Adelaide yesterday:
Costco, Churchill Rd, Kilburn - 94.7c a litre
Coles Magill and Portrush roads, Payneham - 95.9c
Woolworths, Hackney Rd, Hackney - 95.9c
Several outlets - including On The Run at Portrush Rd, Payneham, and The Parade, Kensington, and BP at Henley Beach Rd, Mile End - 119.9c