There’s a fuel price war on in Brisbane’s northside.
The opening of U.S. retail giant Costco petrol outlet, has forced other petrol stations to slash their prices.
Jacinta Lal reports.
It’s the first Costco petrol station in Queensland, and the first shot has been fired at competitors.
Located at Northlakes, bowsers here have opened with prices 15 cents cheaper than nearby.
The fuel station is pumping petrol around $1.39 per litre.
A price well below competitors.
Patrick Noone, Costco MD: “We don’t make many pennies on things we sell, but we sell more we make more pennies and that’s our goal.”
The shake up in petrol prices will save motorists hundreds of dollars.
Michael Roth, RACQ: “Coles, Woolies, BP, Caltex all the competitors will have to reduce their prices in that local area otherwise they’re going to lose volumes to Costco.”
The discounted fuel however is not available to everyone. Motorists first have to become a Costco member with an annual membership of $60. Something not every motorist is willing to do.
Vox 1: “Not unless there’s a lot more stores around, we won’t worry about it.”
Others are happy with the membership deal.
Vox 2: “I can make that back my reducing my fuel cost.”
Vox 3: “They said they’d refund the money if you’re not happy or not using the $60, if you don’t think you’re getting the value for it so yeah see how it goes.”
Costco will open a groceries and retail warehouse at the end of the month.
Jacinta Lal, QUT news.