There’s hope that relief at the bowser is on its way after G7 Nations announced they’ll be releasing 100 million barrels of oil, which is expected to put downward pressure on fuel prices in Australia.
But drivers in South Australia were chasing discounted petrol now, with some even queuing up from midnight on Saturday to cash in on a fuel frenzy.
Drivers in SA weren’t waiting for cheaper petrol prices, they chased the discount instead, with some even queuing up from midnight to cash in on a fuel frenzy. 9News
They flocked to Edwardstown where billionaire Adrian Portelli opened his first membership-based petrol station in the state, offering a price at the pump people haven’t seen in a long time – $1.99/L for unleaded and diesel at $2.59/L.
Day one of discount fuel saw plenty of it being burnt in the queue, with the lengthy line meaning some people waiting three hours, but many said it was well worth it.
At 9am the bowsers were flowing at the outlet on the corner of South and Daws Road, which is the second service station Portelli has opened in Australia.
It offers wholesale-priced petrol to those who pay an annual $99 membership fee.
“We’ve smashed the pricing boards and they get $50 free fuel as well, so it’s a double win for them,” Portelli said of his opening day deal.
Day one of discount fuel saw plenty of it being burnt in the queue, with the lengthy line meaning some people waiting three hours. 9News
But it’s not cheap enough for some, including one driver who’d made their way to Edwardstown from Mount Gambier.
“Well I live 500km away, [I] hoping he was going to do what he did in Victoria and sell it for $1 a litre, but unfortunately it’s at $2.59 so I’ll just fill the car and head back home and run at a loss,” he told 9News.
But disrupting the petrol business isn’t enough for Portillo, who already has his eyes on his next big business move – with a subscription-based supermarket planned for nearby.
“We’re trying to get something really close to the petrol station just for the convenience, so hopefully we will have something rock solid in the next week or two,” he said.
Crunch time this Christmas
It comes as Aussies are warned to strap in for an expensive Christmas.
In a world where the so-called cost-of-living ‘crisis’ is now baked in and interest rates are rising, the government faces a tricky decision on whether it gives taxpayers a sugar-hit of help but push up inflation, or offer no relief, which would help the budget in the long term.
Economists are against the short-term gain.
“Stop putting money in people’s bank accounts in the name of cost of living pressure relief,” Saul Eslake told 9News.
Global oil prices are keeping costs high despite supply into Australia remaining strong.
Global oil prices are keeping costs high despite supply into Australia remaining strong. AP
Across the country this long weekend, average prices are at their highest since April.
“The pass through from rising energy and other input costs represents an updated risk to our December quarter estimates of core inflation,” Westpac’s Justin Smirk said.
The announcement from G7 nations on releasing the fuel from storage is to defuse a threat from Donald Trump that he’d ban exports and keep American diesel in America.
“I do think it’s a recognition that this international crisis is ongoing and there’s no sign of it being resolved anytime soon,” Energy Minister Chris Bowen said.
NRMA’s Peter Khoury similarly warns it’s an ever-changing situation, where we could see petrol prices change in an instant.
“By the time this long weekend ends, things could happen in the Middle East, that could escalate the conflict,” he said.
The warning bells have been sounded but whether the Treasurer is listening will be revealed in December’s mid-year budget update.
“What I will say also is that the Government will continue our laser-like focus on affordability, cost of living relief,” Bowen said.