Petrol Price Pressure
While you can’t change the price of petrol, there are some things you can do to minimise the effect of rapid rises.
Understanding your local petrol price cycle is a good place to start. This occurs in capital cities, and refers to a pattern of sudden peaking of fuel prices, followed by a slow decrease. Prices from the top to bottom of the cycle can vary by as much as 13 cents per litre.
A price cycle starts when one or more oil companies increase the price of its unleaded fuel. At this stage, the majority of petrol stations are still decreasing their prices. The price leader increases their price at 6am on Day One of the price cycle, and on Day Two most other oil companies follow suit and increase their prices. Usually the smaller, independent petrol stations raise prices on Day Three.
In Sydney, for example, cycles usually last from 6 to 8 days. The most common day for prices to peak is Thursday, and trough on Tuesday. Each city is different, and of course unexpected events can affect prices, so the cycles are not always the same. The ACCC runs a website which gives up-to-date information about the prices cycles of most Australian capital cities: http://www.accc.gov.au/content/index.phtml/itemId/280309
The best time to buy petrol is on the first day of a price hike, as a small number of retailers may have hiked their prices, but the majority of retailers (especially independent fuel outlets) will usually still be pushing their prices down. Toward the bottom of the price cycle these decreases can be as small as 0.1 cents per litre. When price decreases get this small, it usually means a price hike is imminent. This is the time to buy, rather than waiting until your tank is empty.
Driving with greater fuel economy also makes sense - keep your vehicle in shape, maintain proper air pressure in your tyres, and minimize the use of your air conditioning. Stick to the speed limit - high speeds use more fuel - and reduce the number of short trips you take. When buying a new car, think fuel economy.
Lastly, include petrol costs in your weekly budget, and be generous, so that when prices rise, you aren’t left stranded.
Click below to get some addditional financial assistance.
Tiffany Boys. - Tiffany lives and works in Sydney
http://www.crestfinancial.com.au
