Costco's move into fuel could spark price war
Costco is about to spark a petrol price war in Melbourne.
Discount fuel will be on sale at its new Moorabbin store from tomorrow and the price could plummet below a dollar a litre.
For the first time Costco is selling fuel in Victoria at its new Moorabbin site. Motorists tested the 18 pumps ahead of the petrol stations official opening tomorrow.
It is Mobile fuel rebranded and these are regular prices for members only.
At $1.10 for unleaded and diesel, truck drivers could save $200 a tank.
Buyers of Costco petrol interstate have so far enjoyed savings of up to 15 cents per litre.
The move is expected to fuel a price war in Melbourne’s south east.
“Anytime the competition can drive that price lower it’s great for motorists and great for consumers,” Con Stavros from RMIT University said.
From tomorrow motorists will save 5c a litre on regular unleaded, 6c on premium and 9c on diesel.
No frills service and low margins will keep prices down.
But across the board petrol prices could drop to $1 before Christmas.
“Even if they don’t move to a dollar a litre it’s been a pretty sweet couple of months for motorists,” economist Tom Piotrowski said.
As the world’s second largest retailer expands its network every new site is expected to sell fuel.
