Five tips for saving money when filling up your boat or outboard engine

As the Australian Competition and Consumer Commission (ACCC) comes out all guns blazing on the price gouging going on with petrol retailing, they should spare a thought for the hapless boaters held to ransom by the one-armed bandits at some marinas.

In 2016-17, annual average petrol prices were at their lowest levels in real terms since 2001-02, the ACCC says in its latest fuel price report. The annual average retail petrol price in the five largest cities was 122.6 cpl in 2016-17.

While motorists (and trailerboaters) have been enjoying the cheapest petrol since 2002, the ACCC believes prices should have been even lower given the continuing high gross retail margins. If it looked at marinas, it would fall off its chair.

FIVE TIPS FOR SAVING MONEY WHEN FILLING UP
1. Shop around for price competitive pumps at the servos and marinas
2. Ask for the best price and inquire about discounts on the advertised priced
3. Ask about loyalty cards and use shopper dockets
4. Join a boating club and avail yourself of member discounts
5. Buy in bulk if your boat tanks allow it.

On an annual average basis, gross retail margins of petrol sales in real terms remain the highest since the ACCC began monitoring them in 2002. That being the case, our marina prices are showing double the margin of the service stations. And in some cases way more.

In 2016-17, the gross retail margins at service stations in Melbourne (12.3 cpl) and Perth (12.0 cpl) were the highest in real terms since 2002. In the last 15 years, the average retail margin has been 7.7 cpl.

Retail prices in Brisbane were the highest of the five largest cities in the quarter to June 30, 2017. The average retail petrol price in Brisbane was 3.3 cpl higher than the average across the other four largest cities.

The ACCC’s recent Cairns petrol market study revealed that petrol stations in Cairns were making around 38 per cent higher average net profits than other sites around Australia.

Of the price paid at the bowser, 42 per cent is the international price of refined petrol and another 42 per cent is taxes (i.e. GST and excise). That leaves 16 per cent to play with for margin and costs. If you feel so inclined, you can learn more about fuel prices in Australia here.

Meantime, we have used this unwelcome news to not only complete our own review of fuel prices around the waterfront, but to also look at ways you can save when filling up.

MARINA MARGINS
When we called the marinas, we found some great operators like Birkenhead Point (opening photo) offering discounts to all and sundry, but also others partaking in extreme retailing.

On Saturday, September 2, 2017, d’Albora Marinas at Rushcutters Bay told us Premium Unleaded Petrol (PULP) was $1.70lt and diesel was $1.51. How’s the margin in that fellas?

Of course, marinas are different businesses to service stations. Volumes are much lower, boat fuel sales are seasonal, and on wet weekends there mightn’t be a salty soul shaking hands with the pump.

There are also costs to absorb. Delivery of fuel might cost around 1-2¢ a litre. Roads and Maritime in NSW charges about 1-2 per cent of fuel sales for the lease of water occupied by refuelling facilities. There is line testing and annual EPA requirements. But the automated ‘swipe-and-go’ pumps don’t have the staffing needs.

When it’s all said and done, we calculate that at $1.50 a litre there’s 30¢ a litre margin in it, roughly three times the margin of service stations. When the fuel is $1.70 a litre, the margin is 50¢. That’s a bit rich. From this, costs need to be deducted but they wouldn’t be more than 10 cpl, we estimate.

LOWER PRICES IN GENERAL
Petrol prices have a profound effect on boater habits and boat designers. During past petrol price spikes we have seen a spate of plodding displacement boats emerge with go-slow low fuel burn. No-one likes a day of trailerboat fishing with $500 fuel bills either. Simply, high fuel sales modify and curtail our boating activity.

High service station prices are obviously felt by trailerboaters filling up before launching at the ramp. But when we put this article together we thought we’d reach out to our boating friends to get an update on the cost of fuel at marinas where its harder to shop around.

As touched on, d’Albora Marinas at Rushcutters Bay has PULP for $1.70lt and diesel for $1.51 when we called on Saturday September 2. PULP was $1.53 a litre at d’Albora Marinas in Akuna Bay when we called on the same day. So, you have to ask, what’s going on. Why is Rushcutters so expensive?

Even given the added cost on infrastructure, the price of PULP and diesel at some big city marinas is exorbitant. Marina operators are clearly taking advantage of their captive audience. Given the location in the ritzy Eastern Suburbs, it’s probably just a case of charging what you can in Rushcutters Bay, just down the road from Double Pay, I mean, Double Bay.

But there were some big differences with fuel prices when our boating mates chimed in across the country. For example, diesel at Hamilton Island was $1.38 a litre — cheaper than d’Albora Marina at The Spit in Sydney at $1.48 — but Rosslyn Bay Marina in Yeppoon, 500km south of Hamilton Island, had diesel for $1.21 a litre. So if you’re heading north, fuel up there instead.

SHOP FOR DISCOUNTS
If you are a tenant of d’Albora Marina, with a boat in a berth, you get a 16¢ a litre discount. As we said, there’s a lot of fat built into the bowser price. The d’Albora Gold Card for non tenants offers 4¢ a litre discount.

Birkenhead Point, which has the newest refuelling centre on Sydney Harbour costing some $2m, offers a loyalty program to all customers and not just tenants. The loyalty card gives 5¢ off a litre, then 5¢ off and a free coffee or shopping berth, then 10¢ a litre discount. After three transactions, you get the next card and start again.

As an aside, Birkenhead Point marina also buys and sells Shell fuel (you can ‘Google “terminal gate price fuel Shell” to see what retailers pay per litre). Some marinas buy from other sources including independents and fuel quality can vary. Go with a high turnover location. Commercial refuelling facilities and trawler wharves can be cheap and good.

If you are a member of a boating club, you can also derive a discount. While the Royal Motor Yacht Club Broken Bay was charging $1.42 a litre for diesel and $1.48 for PULP, members get 11¢ a litre discount. It pays to ask what discounts there are on the advertised bowser price at all marinas.

If you own a sportscruiser with big blocks, or a centre console with a rack of triple somethings, then take a tip and shop around. Also ask what discounts and loyalty programs are available and… buy in bulk wherever possible.

Most marinas off discounts for 1000lt-plus and 2000lt-plus. You should get 10¢ a litre off, providing that your boat has tanks that big. But the ACCC ought to do something about $1.70 a litre when the servos are selling for $1.20ish.

Thankfully, marine engines have become much more fuel efficient in recent years. And with electronic gauges you can easily find your boat’s sweet cruising groove and go further.

Meantime, all boaters ought to vote with their feet and fleet where fuel prices are inexplicably high on the waterfront.

When filling up, it's important you do so safely. Here are some refuelling tips.