NOV02-06

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Monitor The

Your Community Newspaper ~ Roxby Downs

www.themonitor.com.au

Phone (08) 8671 2683

Fax (08) 8671 2843

Volume 17, Thursday 2nd November, 2006

The price of country living

P

By Stuart Deed

etrol prices in Adelaide have plum- Association (RAA) spokesman Hamilton Calder believed that the figures given by the trucking meted but motorists in Roxby Downs said the South Australian government paid sub- firm were “reasonablY accurate” but owner continue to pay top dollar for fuel. sidies to fuel distributors in rural areas to keep of Lavrick’s Roadhouse, Scott Rawlins,

Ceduna, which is 250km further from Adelaide than Roxby Downs, has an average petrol price at eight cents less than local prices. BP Roxby Downs manager, Jason Lee, said sales volume probably kept prices low in Ceduna. “If you’ve got lots of litres of fuel going out the door all the time then you can afford to keep prices low,” he said. However, in Andamooka the price of fuel is, on average, five cents cheaper per litre – despite being 30km further away and with a much lower population and traffic flow. A number of factors could hold prices at the current levels in Roxby Downs including the distance from Adelaide, the lack of competition, and the high price of running a business in town. But do these arguments hold water? First of all The Monitor addre ss e d the dist ance argument; after all, Roxby Downs is 600km away from Adelaide. Roy al Automobile

the price of fuel affordable. said he would be happy to see trans“Most of the freighting costs to get fuel to portation figures that ‘low’. rural areas are covered by the government’s fuel The estisubsidy, which for areas more than 300km away from Adelaide is three cents per litre,” he said. However Roxby Downs motorists continued to pay upwards of $1.38 per litre for unleaded petrol when the average price for fuel in Adelaide last week was $1.12. Mr Calder said the RAA was investigating using data from other states to monitor prices within South Australia. Information from a local trucking firm revealed the cost of trans-

porting fuel from Adelaide t o R ox b y v i a roadtrain in 52,000 litre loads would cost approximately $3,500 – which means each litre should cost less than seven cents to transport. Manager of the Roxby Downs BP, Jason Lee, said he

“The costs of r unning a business in Olympic Dam are considerably higher than running a similar operation in

mated transport costs and the State Government’s fuel subsidy suggest prices should be no higher than five cents above Adelaide’s prices. In a week when the price of fuel, according to The Advertiser, dropped below one dollar per litre in Adelaide for the first time in 15 months, locals could expect to pay around $1.15 per litre for fuel. There was also the associated cost of living in Roxby Downs, which also affected businesses. Laverick’s Roadhouse owner Scott Rawlins said a strong factor in the high prices in town was the operating costs.

Adelaide.” “But we do our best to stay competitive for our clients and also stay in business,” he said. For BP manager, Jason Lee, the lack of competition in town affected pricing. “If we had a greater population in town then there would be more competition and lower prices because there would probably be another fuel outlet,” he said. However, the two fuel outlets in Andamooka experience similar operating costs and have a far smaller client base - but prices are still lower. Neither Mr Rawlins nor Mr Lee were prepared to make a comment on why or how prices in Andamooka were lower than Roxby Downs.

Recent Statewide fuel prices Adelaide

Roxby Downs

Ceduna

$1.12/L

$1.38/L

$1.29/L

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