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11 April, 2022

Viva Energy responds to 'rip-off' claims

Hear what they had to say about Weipa's fuel being the highest priced of any Queensland port.

By Matt Nicholls

AFTER ignoring Cape York Weekly’s requests for comment about Weipa’s fuel prices, Viva Energy responded immediately after last week’s front page story.

On the morning of the paper hitting shelves, Viva Energy was on the phone to acknowledge they had brushed our emails aside and vowed to provide an explanation as to why Weipa’s fuel prices were the highest in the state.

In a statement sent yesterday, Viva Energy blamed Weipa’s infrastructure and smaller market for its obscene prices.

“Locations such as Weipa are remote and the supply chains are challenging – which does result in higher costs of supply,” a Viva spokesperson said.

“The differential in the cost of diesel versus other locations is a direct result of shipping costs, which are higher for Weipa than for any of the other ports mentioned in your article.

“Shipping costs into and around Australia have also been exacerbated by global tanker rates that have almost doubled since the invasion of Ukraine.

“In relation to gasoline (unleaded), Weipa is by far the smallest market for gasoline sales volume of any terminal that Viva Energy supplies.

“Because of the small volumes handled at the Weipa operation, the costs of freight and storage and handling are relatively higher on a cents-per-litre basis, so the doubling of freight costs can have a relatively higher impact in a location such as Weipa.

“Viva Energy is continuously looking at our wholesale pricing around the country to ensure we are as competitive as possible.

“It should also be noted that while Viva Energy sets the wholesale terminal gate price, we do not set the retail price at the service station.”

 


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