Campbell Gellie, 22 January 2016

DIESEL will dip below a dollar a litre again today at BP Boyne Island for the third day in a row.

Owner Col Taylor has his diesel priced at 99.9c, more than 15c cheaper than the average price in Gladstone, 115.3c.

It might have been because he was run off his feet yesterday, but Col said he couldn’t remember the last time his diesel was priced that low.

“It would be years, maybe a decade ago,” he said.

“Customers are very happy but my staff aren’t. They haven’t had time to scratch themselves today.”

He brought in three trucks to refill his diesel yesterday; usually he has just the one.

Gladstone customers have long taken their business down to Boyne, to make the most of the cheaper prices.

Michele Fowler wrote to us yesterday and said: “We drive down there and make a morning of it! Do some shopping and have lunch! I suppose it’s a win win! We get cheap petrol and Boyne shops get our business!”

RACQ spokeswoman Renee Smith said it was the first time in years diesel had been that cheap in Gladstone.

“We think the price of diesel is extremely overpriced, it should be around a dollar,” she said. “(But) There is only one in Brisbane that I know of that is under a dollar for diesel.” CQ University economist John Rolfe said the base price for oil had dropped about 50% in the last few months while the Australian dollar dropped around 30%.

Yesterday oil finished 7.19% down at US$26.55 a barrel and the Australian dollar was 0.41% down to US$0.68.

Mr Rolfe said oil was now cheaper to buy but because Australia imported its fuel, the weaker Australia dollar was cutting into those savings. “But overall customers should be paying less for fuel because the oil price is so low,” he said.

“Somewhere along the supply chain there are some margins being earned.”

He said Col’s business model of using the same profit margin for 19 years set was different to most service stations. “It’s coming back to an older style of retailing. Getting a small margin from a lot of customers,” he said.

Col’s unleaded petrol price, 115.9c, is also under the region average of 118.6c. RACQ says a fair price for unleaded in these areas is 116.7c. Yesterday the terminal gate price for diesel was 92.5c a litre and for unleaded, 106.7c.

Extracted in full from the Gladstone Observer.