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Fuel Prices in Canberra vs Sydney

Posted By Gungahlin_Bob On 6 December 2012 @ 9:59 am In News,Opinion,Transport | 27 Comments

I know this topic has probably been done…..but just want to add some facts that keep running around in my head. I have made several visits over the last year, and again last weekend. Each time there has been a major petrol price difference and this was no different on the last trip.

Western Sydney $1.291/l
North Canberra $1.496/l

These prices are same day 3 hours apart

Now I appreciate the costs of transporting fuel can increase the costs, won’t begrudge them that……however if someone can help me understand further the costs, otherwise I believe we are being ripped off.

My calculations are

Tanker Truck Capability : 40000 litres
Price Difference between Sydney/Canberra : $0.20 (rounded)
Profit Made (Selling a Tanker of fuel in Canberra instead of Sydney) : $8000

Tanker Costs
Approximate Wages for Driver : $1200 ($600 + overnight allowance + insurance)
Fuel Costs for Return Trip to Sydney :  $800

The costs work out to be $2000, but for safety, lets say $3000 to cover the transport. This is still $5000 made which appears to be gouging.

This would potentially mean that we should be paying $1.38/l or less. Remember I am being generous on the Tanker costs, I believe the fuel costs for the return trip a over the top as well (I am sure that they get a discount as well). And I haven’t even considered that driving the trucks from Botany/Kurnell to Western Sydney has a cost as well which on Sydney traffic is not negligible (which is incorporated in the Sydney price. I understand that there are large tankers that can be used, making the profit even more.

All the petrol stations in Canberra seem to have high prices, even the independents. I can’t use any words, but to me, “Something is rotten in the State of Denmark”. Read in to it what you will.

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