However, what is the reasoning behind the discrepancy?

“In general terms there is no doubt regional areas are hit harder in terms of petrol prices, particularly in towns where there is fewer competition,” National Roads and Motorists’ Association (NRMA) spokesperson Peter Khoury said.

According to NRMA’s online Bowser Buster, which ranks the weekly average of fuel prices in 54 different locations across NSW, for the week ending on December 21 Bega’s unleaded petrol cost 149.2 cents per litre and was ranked 51.

This was drastically different to Sydney, which was ranked number one with unleaded petrol at 118.6c/L during the same period of time.

As of Friday, prices had dropped at Bega’s outlets, with unleaded selling around 132.9c/L.

Mr Khoury said reasons why there is a price difference for petrol between Sydney and Bega are as there is more competition in Sydney, fewer players in Bega, and as oil companies know there is not as large a market they can charge what they want.

Caltex spokesman Sam Collyer said his company only prices two sites in Bega, one on Carp St and one on Lagoon St.

While the major factors in determining petrol prices are the international market and exchange rates, he said the individual retailer has to determine what the petrol price in their business will be in order to cover operational costs.

The average retail net profit, or the money which goes to the retailer as profit, is 2.2cents per litre.

“The level that the retailer puts the price at is relative to the cost of securing the product,” Mr Collyer said.

“Each retailer makes an individual decision regarding petrol prices.

“Retailers take into account the number of customers in the area, the volume of fuel sold and the operating costs associated with transporting, storing and retailing the fuel.”

He said freight was one of many factors in pricing for regional towns, as for example Bega’s Caltex petrol has a long way to go as it is shipped from Sydney.

However, Mr Khoury said “freight is not the factor” causing such a large difference between regional and metro outlets.

He said estimates put the cost of freight at 2-3cents per litre total, but once you get into any area out of the capital cities, prices increase substantially.

While there have been international price changes for petrol over the past few weeks, Mr Collyer said metropolitan areas often reflect these changes quicker than regional locations.

“Movements in retail petrol prices in regional locations are largely driven by changes in international refined petrol prices and the Australian dollar compared with the US dollar,” he said.

“There has recently been a marked fall in the international price of petrol and the impact of this change is starting to be seen across regional areas.”

Mr Collyer suggested a factor why prices change slower in regional areas is as there are fewer customers around it takes longer to go through fuel supplies.

“In Sydney, you’re operating at a lower margin, but can still make money as you are selling more fuel,” he said.

INDEPENDENT service stations can have an impact on driving down petrol prices, the National Roads and Motorists’ Association (NRMA) has said.

Spokesperson Peter Khoury said NRMA has noticed “overwhelmingly” that independent service stations, such as Cobargo’s Petroleum United and Tathra’s Enhance, are often cheaper than the major providers.

“Independents have no other option to compete with the major players than their price at the bowser,” he said.

“They don’t have the organisational resources behind them, which competitors such as Coles and Woolworths do.”

A representative from Cobargo United said their petrol is shipped from Sydney, and every day prices change depending on how much it costs wholesale.

In Bega the only independent is the Caltex, or John H Jones, service station on Newtown Rd, where employee Diane Robinson said prices are determined by the boss.

“We try and stay competitive to the other service stations [in Bega],” she said. 

Petrol prices at the Caltex Woolworths on Gipps St are determined by its competitors, as when the petrol prices at competing service stations in an area change so do those at the Woolies servo.

“Caltex Woolworths follows the local market, whether the market moves up or down,” a Woolworths spokesperson said. 

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