PETROL prices jumped 40 cents per litre overnight Wednesday ahead of the Melbourne Cup long weekend.

On Wednesday some stations were selling unleaded petrol for 147.9 cents a litre, including the BP petrol station on the Surf Coast Highway, Grovedale, and Coles Express stations on Moorabool St, South Geelong and Barrabool Rd, Highton.

While less than 200m away from BP, at APCO, on the Geelong-bound side of Surf Coast Highway, petrol was a 107.9 cents a litre on Wednesday afternoon.

BP petrol station selling unleaded petrol at 147.9 cents a litre on Wednesday morning
BP petrol station selling unleaded petrol at 147.9 cents a litre on Wednesday morning
Less than 200 metres away, APCO petrol station at the Surf Coast Highway, Grovedale selling unleaded for 107.9 cents a litre on Wednesday.
Less than 200 metres away, APCO petrol station at the Surf Coast Highway, Grovedale selling unleaded for 107.9 cents a litre on Wednesday.

Petrol also remained cheap at the United petrol station in Manifold Heights on the corner of Aberdeen St and Shannon Ave, and at APCO East Geelong.

APCO director Peter Anderson said the price rise was not associated with Melbourne Cup long weekend, and the 40 cents a litre rise at some stations did not amount to price gouging.

“If you work out the average over a long period of time probably not,” Mr Anderson said.

“Station’s volume (of petrol sold) are down but unfortunately it still costs you just as much to operate.

“You might sell a bit less fuel but you got to sell either more litres at a lesser margin or less litres at a higher margin.

“Industry would be far better of selling at a lower price for a longer period.”

Mr Anderson said the price rise was due to the market trying to make up for losses made selling at extremely lower prices.

“(Selling at low prices) is the competition at work trying to get more volume (sold).”

Mr Anderson said he’d kept unleaded prices at 107.9 cents a litre for almost two months across his eight stations in the Geelong region despite volume sold being down about 15 per cent on this time last year.

He said it was likely the unleaded price would rise at APCO in coming days but not beyond 130cpl.

RACV senior vehicle engineer Nicholas Platt said easing COVID-19 restrictions were behind more demand.

“Geelong prices have significantly spiked after a month long period of flat prices around the 109 cpl mark. Geelong prices are rising, but haven’t peaked yet,” Mr Platt said.

“The lessening of restrictions in Melbourne and regional Victoria may have caused a sudden spike in demand and contributed to the rapid petrol price rise.

“It is not entirely clear why prices have risen so sharply as there hasn’t been a rise in wholesale prices.

“There may be some increase in prices in response to increase demand as regional restrictions are eased.

“Geelong has a pricing cycle similar to Melbourne which normally lags behind metro prices by a few days.”

Extracted in full from: https://www.geelongadvertiser.com.au/news/geelong/petrol-in-geelong-jumps-to-147-centre-per-litre-overnight/news-story/eda6c027bbb6a6dc098cd8797f9040cf

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