In the Australian petrol market price cycles generally represent a decline in the price of petrol followed by a sharp increase in the price. These cycles usually occur on a regular weekly basis in the major Australian cities.
Consumers can take advantage of petrol price cycles by buying petrol when prices are at their lowest.
What causes petrol price cycles?
The ACCC and other organisations have examined the petrol market to find out why price cycles occur. This research indicate that there is no one single factor which causes price cycles in Australia.
A number of factors can lead to price cycles, including:
the level of demand for petrol on different days of the week
the level and extent of competition in particular locations
pricing arrangements between suppliers and retailers.
The influence of these factors can vary across locations and also over time.
Where do petrol price cycles occur?
Regular petrol price cycles exist in Sydney, Melbourne, Brisbane and Adelaide and typically last for a week. At times price cycles also occur in other cities and regional areas of Australia as well as in other countries such as Canada, Germany and the United States.
Cheapest and most expensive day of the week to buy petrol
Because price cycles affect petrol prices in some of the major Australian capital cities, there is often a regular pattern of the cheapest and most expensive day for petrol during the week. The ACCC provides information about the cheapest and most expensive day of the week in the major cities where price cycles occur.
