F. Regions (FAQ)

1) Why is there a big difference between metro and country prices?
2) Why are there big differences in country towns that are close to each other eg. Bunbury and Busselton?
3) Why don’t you show my town / all regional prices?
4) Why doesn't FuelWatch cover the whole of Western Australia?
5) How does our regional town join FuelWatch?
6) Where can i find information about the Country Age Pension Fuel card?

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1) Why is there a big difference between metro and country prices?

Country prices tend to be more stable than metropolitan prices.  Country outlets do not have the same level of competition and tend to buy their fuel stocks less frequently than metro stations.  A major difference between country and metro prices can be the metro price cycle.  Due to the heavy competition for fuel in the metro area, particularly for ULP, there is a distinct price cycle with extreme highs and lows.  Any major change to fuel prices e.g. due to international benchmark price movements, tend to take longer to show at the bowser in the country than in the metro area.

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2) Why are there big differences in country towns that are close to each other eg. Bunbury and Busselton.

There are many factors that contribute to different prices in different areas. These include things like:

• volume of sales - places with lower volume of sales need to charge more to cover their operating costs
• location - passing traffic can affect the volume of sales
• wholesale cost of fuel - companies selling larger volumes are often able to negotiate better wholesale prices
• different operating costs - these can include things like staff, rent or interest and borrowing costs
• the ability to generate revenue from non fuel sales – sales of food and other items, maybe a mechanical workshop as well
• competitiveness of the local market - the number of retailers and the extent to which they compete on price can be a significant factor
• transport costs,
• purchase contract on wholesale  - in the country because of lower volumes there are fewer supply deals than in the city, and
• smaller economies of scale - which mean that it is more expensive to run a petrol station in the country than in the city.

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3) Why don’t you show my town / all regional prices?

FuelWatch monitors and reports on about 80% of regional fuel retailers.    Q4 may cover your query in more detail.   

If your town has grown and you feel it would be valuable to your community to be included in the FuelWatch please contact us.

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4) Why doesn't FuelWatch cover the whole of Western Australia?

FuelWatch covers 100% of metropolitan retailers and about 80% of regional retailers in Western Australia. When the Government decided which regions to cover with the FuelWatch regulations in Western Australia, they took into account a number of factors.

FuelWatch's main aim is to increase price transparency and competition in regional areas in order to give consumers the ability to buy the cheapest fuel possible.

If an area is in a remote location, has a low population, only one retailer and very few visitors, then the price transparency provided by FuelWatch may not provide the same benefits to consumers in those locations.  This is because they cannot buy fuel elsewhere and the increased transparency would not lead to stimulating competition as there are no other retailers to compete with.

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5) How does our regional town join FuelWatch?

If your town has grown and you feel it would be valuable to your community to be included in the FuelWatch please contact us.

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6) Where can i find information about the Country Age Pension Fuel card?

For more information on the Western Australian State Government's Country Age Pension Fuel card, please visit the Country Age Pension Fuel card FAQ.

An overview of the scheme can be found on the Royalties for Regions website.

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