Cheap fuel ‘won’t last’
Thursday, 21st April, 2016
Fuel prices in the city have been dropping, but one retailer doesn’t expect it to last.
Part-owner of Bald-win’s Automotive, Brett Baldwin, said people were enjoying the low fuel prices.
The retailer also got involved running a “happy hour” of cheap fuel yesterday morning.
“We had unleaded fuel at 99.7 cents from 9am to 10am,” he said.
“We had quite a lot of locals come out.
“It created a bit of interest.
“We hope to do more in the future.”
He said they decided to do it in response to recent fuel price drops.
“It was in response to the fuel pricing issue.
“People did tell me they were happy the prices were dropping around town.”
Mr Baldwin said it did mean they ran at a loss during that time period.
“I can’t see it (fuel prices) staying low for too long,” he said.
“It’s really hard to compete with the bigger fuel retailers.
“We’re an independent company and we try to stay competitive.”
The RAA has also reported that South Australian motorists have missed out on an estimated $2.3m in fuel savings this year, after regional fuel retailers failed to quickly pass on wholesale price drops.
RAA Senior Analyst Chris West said regional fuel retailers either didn’t keep pace or failed to pass on legitimate wholesale price reductions to motorists at the pump throughout the first quarter of 2016.
“Diesel users in country areas were the hardest hit, missing out of $1.3m of the $2.3m in lost savings,” said Mr West.
The March rating for Broken Hill was 1.5 out of 5.
“Since November last year, it’s been quite clear that many country retailers have failed to pass savings on to motorists at the same rate that wholesale prices have dropped.
“And in early February, many retailers just stopped passing on further falls in wholesale prices all together.”