A Rutherford man has challenged a major petrol station operator to have a social conscience and drive fuel prices down in Maitland.
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Brett Clulow said there was about 11 cents per litre difference in the cost of unleaded petrol between Woolworths service stations at Islington and Rutherford.
Mr Clulow said, during his travels working as a bus driver, he had noticed the price difference between Maitland and Newcastle had frequently ranged between 8c/l and 11c/l in recent months.
He called on Woolworths to reduce fuel prices in Maitland and wrote to the company to express his concern.
“Major service stations have no regard for the people of Maitland,” he said. “The only reason I see for the discrepancy is greed and profiteering.
“I could understand a slight difference between prices in the Hunter Valley and Sydney because of higher transport costs.
“But the difference in transport costs between Newcastle and Maitland would be negligible and there is a huge discrepancy.”
A Woolworths spokeswoman told the Mercury yesterday that the company’s fuel division was a price follower.
“This means our prices follow our competitors’ movements up or down, depending on the cycle,” she said.
In an email to Mr Clulow, given to the Mercury, a Woolworths Petrol pricing analyst said the company’s policy was to offer competitive prices in a local area extending three to five kilometres away.
“In Maitland we are currently competitive with our designated competition,” the analyst wrote.
Changes to international benchmark prices, the value of the Australian dollar, local competition and pricing decisions of wholesalers and retailers affected petrol prices at the pump, according to the Australian Competition and Consumer Commission.
Mr Clulow said Woolworths should lead price-setting and drive the cost of fuel at the bowser down, given the company’s market share in the Australian petrol industry.
“Given its dominance in the market, they should be setting the lead,” he said. “Independent operators should be following the major companies to try and stay competitive.”