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Hello again from the team at MotorMouth.
As the year rolls on with unstoppable force, last month we saw some pretty interesting gyrations in the fuel markets.
The benchmark price of unleaded in Singapore spiked to over $100 AUD per barrel which has seen the monthly average price of unleaded fuel over $1.25 per litre for the first time since October last year.
For those of you lucky enough to own diesel or LPG powered vehicles the price has been a lot more stable lately but it would seem that that they are creeping up as well.
Our poll last month really got people talking with over 1000 respondents clearly giving the big thumbs up to large scale fuel discounts in exchange for spending up big on groceries. What can I say - Australians really love a bargain!
There were some in the industry that saw this type of promotion as something that could be very damaging to truly independent service station owners who, when you think about it, are just like the local baker, or the local butcher, or the local newsagent.
The question that seems to need the most attention is: Will regular big discounts like this lessen competition over time? As a once off perhaps the answer is no, but what if every two weeks there was a big promotion like this?
Could small retailers compete with that sort of regular activity in the market? And if they could not, would that be a good or bad thing for motorists?
And that, my friends, is the $64,000 question.
Have a safe September.
Cheers
Sean Rennick
MotorMouth
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