Know the petrol price cycle, save money

Petrol pricing in Perth has for the last three years been following a weekly price cycle where prices hike upwards on Wednesdays by up to approximately 50 cents per litre at some retailers.

Then, prices taper downwards until the following Tuesday, before the cycle starts over again.

In WA, retailers are also bound by the Petroleum Products Pricing Act 1983, which legally obliges them to notify the WA State Government of their fuel prices for the following day by 2.00pm, and then keep those prices unchanged for 24 hours from 6.00am.

Consumers can use this to their advantage and shop around, knowing prices are not going to fluctuate throughout that 24-hour period. If you do shop around, the savings can be substantial over a year.

If motorists consistently time their fill-ups to avoid the hike days, then on average they have the potential to save approximately $600 on fuel costs over a year.

Visit the FuelWatch site for up-to-date fuel prices.

It’s important to remember that currently, the price cycle is mostly limited to petrol – diesel prices do not move with the weekly cycle and the cycle is mostly limited to the Perth metro area – prices don’t move in this way in regional areas

While major retailers like BP and Coles participate in the petrol price cycle, not all retailers do, so check with Fuelwatch to avoid disappointment

Why is there a petrol price cycle?

“Perth’s petrol price cycle is a strategy used by fuel retailers and is not directly related to the costs of refining or transporting petrol,” said RAC’s Manager Vehicles and Fuel, Alex Forrest.

“Sometimes, at the point in the price cycle where prices are lowest, retailers may even be making a slight loss, where pump prices are compared to wholesale prices.

“Motorists can also use this predictable cycle to their advantage and fill up on days when prices are at their lowest point in the cycle (currently Tuesdays).”

Other major Australian cities also have petrol price cycles, however those cycles are typically much longer - up to 50 days or more.

There are other simple things you can do to save money on fuel in the long run, including avoiding unnecessarily hard acceleration and heavy braking, planning your trips well, and ensuring your tyres are at the correct pressures.

Removing any unnecessary weight from your vehicle and servicing your car regularly can also help reduce fuel consumption.

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