Motorists enjoy break from petrol price hike

A competitive yet stable local fuel market has insulated Bunbury from the woes of skyrocketing petrol prices felt in the metropolitan area.

According to a Fuelwatch spokesman, while Perth experiences a phenomenon known as the Edgeworth price cycle, Bunbury is a more stable market that follows the international benchmark price.

"Increasing international demand and recent political unrest in the Middle East and northern Africa has caused upward pressure on prices," the spokesman told the Bunbury Herald.

"But the Bunbury fuel market has become more and more competitive over recent years so generally I think Bunbury motorists are getting a reasonably good deal."

The spokesman also said the high Australian dollar had protected motorists somewhat from international price increases.

In fuel markets, the Edgeworth price cycle is where strong competition drives the prices down slowly in small increments until it reaches wholesale cost before one retailer restores prices and is quickly followed by other outlets. The cycle is then repeated.

Economists believe that although rising fuel prices is bad news for motorists, the tourism and transport sectors will be hit significantly hard with the costs passed on to consumers.

CommSec economist Craig James said recent data showed that, on average, motorists were spending $200 a month to fill up their vehicles, a $25 increase from December.

B&J Catalano Pty Ltd State manager, transport and materials, Bill Perry said with a fleet of more than 80 trucks across its metropolitan, MidWest and South West operations, the rising cost of fuel had a significant effect on the transport business.

Owner of Harvey-based mobile food van service Skip’s Fresh Food Express, Anthony Schirripa, said while he would absorb any fuel price rise in the short term, that would be unsustainable in the longer term.

"They say the price will remain the same in the South West but when the price goes up in Perth we cop it down the track like a month later and we cop it bad," he said.

"In the next six months if prices continue to go up everything will become more expensive.

"I feel sorry for the customers because their wages are staying the same but businesses can’t afford to keep absorbing these costs so it’s the little people who cop it."