Hello FuelWatchers!

This month we thought it timely to look at the effect the introduction of Coles Express stores has had on the fuel price market in Melbourne.  Although fuel cycles and pricing differ from state to state in Australia, it may give some indication of the effect that Coles Express will have when their proposed nationwide roll-out is complete. 

The Coles Express Offer:
Spend $30 or more in one transaction at Coles and BI-LO Supermarkets or Liquorland stores in Victoria and Albury in NSW, to receive a fuel discount receipt that lets you save 4 cents per litre on fuel from participating Coles Express stores.  For more information or if you have any questions on the Coles Express fuel offer, go to http://www.colesexpress.com/questions.asp.

The Melbourne Fuel Market:
Coles Express & Petrol Plus (Woolworths/ Safeway) Compared to the Cheapest Major

In the chart below we have shown the Coles Express and Woolworths + Petrol prices as well as the cheapest major (of BP, Caltex or Mobil) at each price point from the 12 August to the 20 August.

NOTE: The attached chart is constructed using average fuel price data as at 10am each day from some 700 service stations in Metro Melbourne.  The prices are taken from the service station price boards and do not include any discounts.

From this chart is can be seen that Coles Express and Woolworths + Petrol are watching each other closely.  Although this struggle between Coles Express and Woolworths + Petrol may have been expected, it is interesting to note that at various times throughout the days surveyed, the majors were extremely aggressive and competitive in their pricing.  Of the majors, BP proved most often to have the cheapest average price.  BP prices also often matched, and sometimes had a cheaper average price than either Coles Express and Woolworths + Petrol. 

In the week from the 11-17 August, the cheapest day of the week to purchase fuel in Melbourne was Thursday with an average price of 86 cents per litre for ULP.  One month earlier, in the week from the 14-20 July (and prior to the introduction of Coles Express stores), the cheapest day of the week to purchase fuel was also Thursday, with an average price of 83.1 cents per litre. If you would like to look at the FuelWatch fuel price statistics or find out the cheapest day to buy fuel in your city, go to http://fuelwatch.com.au/secure/mycharts.aspx.

It will be interesting to see how the pricing situation unfolds in Melbourne, and throughout Australia, over the coming months.

Date	Time
Tuesday 12	10am	86.5	86.2	87.1
Wednesday 13	10am	85.6	85.5			86.50
Thursday 14	10am	84.9	84.9			85.80
Friday 15	10am	86.1	84.6	86.7
Saturday 16	10am	96.2	93.5	94.0
Sunday 17	10am	92.4	92.3	91.1
Monday 18	10am	90.1	89.9	89.6
Tuesday 19	10am	94.3	88.1	89.3
Wednesday 20	10am	97.2	91.3		94.9

Until next month, continue to enjoy the savings!

Kind Regards,

Bernadette Murray
Marketing Manager
bmurray@fuelwatch.com.au