Adelaide’s Petrol Price Cycle Has Changed, Says RAA

Mar 27, 2019

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Petrol price cycles in Adelaide have changed up and are currently now shorter than they have been in recent times.

The RAA’s Mark Borlace told FIVEaa’s Leon Byner on Wednesday:

“We’ve had over the last three or four months a whole lot of different patterns in the way that the price has been spiking, etc.

“More recently those price cycles have actually got shorter, back to the fortnight to two-and-a-half weeks.

“In some instances that actually helps the consumer. For a lot of people you can make a tank of fuel last two weeks so you can buy when it’s cheap and hopefully get to the next cycle and buy when it’s cheap."

“The reason we have price cycles is that the oil companies or the retailers use it as a marketing strategy to disrupt the market. It’s a grudge buy so people will shop on price. Their business models now are more than just fuel, they’re often related to buying fast food or coffees or grocers etc. So they’re using price as part of a whole marketing strategy for their overall business.

“As much as we don’t like cycles history shows us that cities that don’t have [regular] price cycles like Canberra and Darwin consistently have higher prices in those cities. The price cycle at least gives some of us a chance to surf those waves.”

LISTEN:

borlace.mp3

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