C. Price increases and cycles (FAQ)

1) Why are there sharp hikes in petrol prices in Perth?
2) Why are Perth retailers allowed to change their prices by so much?
3) Why don't you show price hike alerts for PULP and 98Ron?
4) Do prices hike before a weekend or holidays?
5) Why aren’t there price cycles for all fuels?
6) What influences prices cycles?
7) How can I take advantage of price cycles?

Back to FAQ main page.

1) Why are there sharp hikes in petrol prices in Perth? Is there a pattern?

This is best explained by the price cycle.  Currently, there is a weekly price cycle for petrol and petrol related products (PULP and 98RON), commencing every Wednesday.

2) Why are Perth retailers allowed to change their prices by so much?

In most parts of WA, fuel retailers are only able to change their prices once a day.  Prices change for a variety of factors including movements in international prices and the petrol price cycle, that occurs only in the metropolitan area. Petrol is like any commodity and retailers are free to set their own prices, which allows for competition in the market.  People can help put downward pressure on prices by only buying their fuel from competitively priced retailers.

Top

3) Why don't you show price hike alerts for PULP and 98RON?

Prices for premium unleaded petrol (PULP) are typically based on the price for ULP (e.g. ULP price plus 5 cents per litre). This means when ULP prices hike, prices for PULP will usually also hike. So if you're a PULP user, next time you see a ULP price hike, remember it also affects you!

Top

4) Do prices hike before a weekend or holidays?

Due to the weekly petrol price cycle in the metro area currently commencing every Wednesday, Thursday and Friday are usually the most expensive days of the week, as most retailers have hiked their prices. By Saturday, the prices for ULP, PULP and 98RON are usually decreasing.    

There is no evidence to suggest fuel prices hike before holidays.  FuelWatch keeps a close eye on fuel prices in WA and would be quick to alert the public if companies use unwarranted price increases just to capitalise on increased traffic during holidays.  Country prices do not follow the extreme fluctuations of the price cycle, so price changes, linked to deliveries of new fuel instead of price cycles, may occur on any day. 

Top

5) Why aren’t there price cycles for all fuels?

Price cycles are a marketing strategy, and are used primarily for ULP fuel, being the most popular fuel used in the capital cities across Australia. Some companies in Perth also attempt to lead regular LPG cycles, though these are not always followed by other companies. Typically, LPG prices move near the start of the month, when the monthly change in the international benchmark price for LPG is passed to the wholesalers and then the retailers.

Top

6) What influences prices cycles?

On a long-term basis, retail ULP prices are influenced by international prices, while on a short-term basis, they generally follow a price cycle. The "hike-to" price and the trough of the cycle will be influenced by recent movements in international prices. Price cycles are just a business tactic, used by petrol companies.

Top

7) How can I take advantage of price cycles?

FuelWatch sends out an email alert to consumers the day before a price hike, so they can buy petrol at the lowest point in the cycle.  Consumers can then make the most of the discounted prices at the low point of the price cycle and keep downward pressure on petrol prices by buying from the cheaper retailers.  

Consumers should be warned though, some brands lure consumers to their sites by keeping a few of their branded sites low so they appear in the media as the cheapest, but they have also been the most expensive brand.  Please check FuelWatch to find the best fuel buys for you before you fill up your car.

Top