Prices for unleaded and diesel at petrol stations in the Goulburn Valley are soaring, with Service Victoria’s Servo Saver app finding the majority of stations across Echuca pricing unleaded just over $2 per litre, with diesel even higher.
The surge follows a “perfect storm” of global and local factors.
Tensions in the Middle East have caused major disruptions to global energy markets, while at home, the Labour Day long weekend and early rains have sent farmers to their machinery earlier than expected.
Justin Cleary, franchise owner of Ampol in Rochester and Echuca, said while he understood the community’s anxiety, there was no need for “toilet paper”-style panic buying.
Mr Cleary’s prices are determined by Ampol’s supply partner, Tesco Petroleum, as it prices its products against the wholesale Australian terminal pricing.
On Tuesday, March 10, Ampol in Echuca was determined the cheapest in the town for Unleaded 91 by Service Victoria’s Servo Saver register, priced at 187.9 cents per litre, while Rochester Ampol had the fuel priced at 193.9 cents — the lowest price in Rochester.
He said the pricing was changing rapidly day to day, but he was hoping to see an ease in the system soon.
“There has certainly been an amount of panic buying — it’s only natural — but people need to understand at the moment supply is generally pretty good,” he said.
“If there are areas that (don’t have fuel) that is really being compounded by panic buying.”
With the increase of farmers stocking up ahead of their sowing program, he said that was a likely cause for the extra load of demand.
“If you’re buying jerry cans ... I think you’re actually probably going to end up with a dangerous situation with extra fuel loads sitting in your shed or storage,” he said.
“I understand people’s anxiety about it and want to try and get ahead of the curve, but I don’t think there’s any reason to panic.”
Anti-price gouging laws in effect
The words “price gouging” have also been thrown around on social media, many claiming petrol stations are purposely capitalising on the already rising prices to make an extra cent.
The Victorian Government has also addressed the expected rise of costs and concerns about price gouging, announcing anti-price gouging laws, which came into effect from Tuesday, March 10.
The new law means fuel retailers will set a daily cap on fuel prices and publish the price in advance, warding off retailers who competitively up their prices throughout the day.
Stations that fail to register or report their prices will face fines of more that $3000 for each breach or more than $24,000 if taken to court.
Consumer Affairs Minister Nick Staikos said the new 24-hour cap would help Victorians shop around to find the best deal and would hopefully put more “downward pressure” on prices.
While the new anti-gouging laws provide a shield against midday price hikes, the reality at the pump remains tied to a volatile global map.
For now, Goulburn Valley residents will be watching the Servo Saver app as closely as the weather radar, hoping the “perfect storm” breaks before the next long weekend.
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