The fuel crisis has hit Sydney's independent service stations and taxi drivers hard, with rising prices leaving many struggling to survive. Tanwar Petroleum, once one of the cheapest stations in Sydney, is now selling fuel at margins that are either thin or below cost, with premium unleaded and diesel nudging $3 a litre. This has led to a dramatic drop in daily sales from 20,000 litres to just 2,000 litres, causing the station to operate at a loss.
The pricing system that allows fuel stations to undercut rivals on price has left many vulnerable to the shock waves of an overseas war. The owners of Tanwar Petroleum claim E10 was bought for $2.68 a litre, but sold for $2.45 — a loss of $0.23 a litre. Diesel was purchased for $3.28 a litre, but sold for $2.99 — a loss of $0.29 a litre. This situation is not unique, as the Australasian Convenience and Petroleum Marketers Association (ACAPMA) notes that businesses without fuel contracts are vulnerable to market instability.
The impact of rising fuel prices is being felt by taxi drivers, with Frank Tmouti's fuel bill rising by $250 a week over the past month. This has led to a rise in public transport usage, with an average of more than 47,000 more trips made each day on trains and metro services during the four weeks up until March 15. The National Roads and Motorists' Association's Peter Khoury notes that independent service stations are consistently the cheapest in Australia, but it remains unclear how long they will have to weather volatile costs and supply pressures.
The crisis has raised questions about the future of independent service stations and the impact of the war on fuel prices. The solutions to the crisis are unclear, but the war's end or a solution to reopening the Strait of Hormuz are seen as the most likely options. The situation highlights the vulnerability of independent service stations and the impact of global events on local businesses.
