Junction Hill petrol retailer profiting less than 1c a litre
JUNCTION Hill Caltex owner Michael Fishburn is making so little profit on his fuel he says he may as well drive a tanker down the road and fill up at one of the major distributors.
Mr Fishburn said he made less than a cent per litre profit on his unleaded, which was yesterday selling at 135.9c per litre.
"I can tell you now, we are making nothing out of fuel at the moment," Mr Fishburn said.
"We are not even paying for electricity to work the bowser.
"On unleaded I'm making less than one cent a litre. We are still dearer than town so I don't know how they are doing it."
Mr Fishburn said the regional price for diesel had levelled out, but the consumer was getting a bargain for unleaded.
"From a retail point of view, unleaded should be 5c to 10c more expensive," he said.
"The price I'm charging now is not sustainable.
"The consumer is winning at the moment."
He said he was unsure how some distributors managed to charge so little for their fuel, but suspected major distributors could sell to them at a cheaper price.
NRMA spokesman Peter Khoury said Australian fuel prices were connected to Singapore Mogas, a Singapore petrol company.
"That's the reality, we are exposed to global factors that we have no control over," Mr Khoury said.
"We hope they don't go up higher than they already have."
Mr Khoury said while regional prices were high at the moment, they were not as expensive as in Sydney.
He even warned prices would start to exceed 150c per litre in Sydney today.
Mr Fishburn also said the price increase was gradual.
"Unleaded and premium fuel is poverty stricken," he said.
"It's come to the point where you consider cutting back on staff."