Which petrol retailers are the cheapest?

The Australian Competition and Consumer Commission (ACCC) has named Coles Express as the most expensive fuel retailer – and Woolworths and independents as the cheapest – following a study of average petrol prices in the five major capital cities last year.

The national consumer watchdog found that petrol prices vary significantly by retailer, allowing consumers to save significant amounts of money if they switch brands.

Its analysis of annual average retail petrol prices charged by major retailers in 2017 in Sydney, Melbourne, Brisbane, Adelaide and Perth makes for sobering reading.

The difference in prices on average across retailers ranged from 9.5 cents per litre in Sydney to 3.6cpl in Melbourne last year.

"Our analysis of petrol prices shows the range between major retailers with the highest average price and lowest average price varied across each city considerably," said ACCC chairman Rod Sims.

“Independent chains were the lowest priced in each of the five major cities and Woolworths was generally below the market average price in most cities.

“Average prices at Coles Express were the highest in all five cities, and average prices at retail sites where BP and Caltex head office sets the retail price were generally above the market average price.

"The majority of consumers tend to go to the same petrol station every time they fill up. This research shows it might be time to consider which station to fill up at," said Sims.

For example, in Sydney, the average prices of six major retailers (Speedway, Metro, Budget, Westside, United and 7-Eleven) and the ‘small independents’ category were below the market average price (124.5cpl).

The average price of one retailer (Woolworths) was equal to the market average price. These retailers account for around 65 per cent of the total number of retail sites in Sydney.

Meantime, the average prices of four major retailers (Coles Express, BP COCO, Caltex COCO and BP Jasbe) were above the market average price. These retailers account for around 34 per cent of the total number of retail sites in Sydney.

Speedway’s average price was the lowest, at 5.5cpl below the market average price, and Coles Express’ average price was the highest, at 4.0cpl above the market average price.

Similar results were recorded in other major capitals.

The ACCC also examined the difference between average prices in 2017 with those in 2007 and found the range between major retailers charging the highest and lowest average prices had increased significantly in the past decade.

"What this analysis tells us is the decision about which retailer to buy petrol from is even more important in 2017 than it was in 2007,” said Sims.

“Retailers’ prices are not the same, they price differently and have different strategies to get you to fill up with them.

"We want to remind drivers there are plenty of apps they can download for free that will tell them where to buy the cheapest petrol in their area. Many people are paying more than they need to for petrol.

"Shopping around has the added benefit of increasing competition by putting pressure on retailers who charge the most to lower their prices or risk losing customers.”

Fuel price websites and apps that provide information to drivers about petrol prices, include the NSW FuelCheck website and app, the Northern Territory MyFuel NT website and app, the WA FuelWatch website, the MotorMouth website and app, and apps operated by GasBuddy, the NRMA, 7-Eleven and Woolworths.

The Queensland Government recently announced it will commence a two-year trial that requires fuel retailers to collate and publish their latest prices online.