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Regional Patterns for the Retail Petrol Prices

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  • Arezoo Ghazanfari

    (School of Economics, Finance and Marketing, RMIT University, Victoria 3000, Australia)

Abstract

Costs of transport fuels are the most significant components of household expenditures, and the price of petrol is of particular importance for commercial and residential sectors in Australia. Regarding the central role of petrol, an in-depth understanding of petrol price behaviours is essential. Previous studies mostly focused on the petrol markets in metropolitan areas, and there exists a significant gap in the regional literature. Therefore, this paper is aimed to develop a clearer understanding of petrol price patterns in urban and rural areas in Western Australia. This study finds a mismatch between pricing patterns across various regions and cities. There are cities with two types of price patterns, cities with price cycles and cities without. Most cities have not excessive fluctuations, and their price patterns are almost smooth. This group of cities have different levels of petrol prices. The greater distance with Perth raises petrol prices in these groups of cities. Cyclical patterns have been observed only in Murray, Mandurah and Geraldton. Comparative analysis reveals that asymmetric and frequent weekly cycles in three cities are similar to the cycle in Perth. It can be argued that there exist no specific differences in petrol price patterns among cities with cycle.

Suggested Citation

  • Arezoo Ghazanfari, 2021. "Regional Patterns for the Retail Petrol Prices," International Journal of Energy Economics and Policy, Econjournals, vol. 11(4), pages 383-397.
    • Handle: RePEc:eco:journ2:2021-04-45
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    References listed on IDEAS

    as
    1. Marco Alderighi & Marco Baudino, 2015. "The pricing behavior of Italian gas stations: Some evidence from the Cuneo retail fuel market," Post-Print halshs-01957369, HAL.
    2. Alderighi, Marco & Baudino, Marco, 2015. "The pricing behavior of Italian gas stations: Some evidence from the Cuneo retail fuel market," Energy Economics, Elsevier, vol. 50(C), pages 33-46.
    3. Benjamin Atkinson, 2009. "Retail Gasoline Price Cycles: Evidence from Guelph, Ontario Using Bi-Hourly, Station-Specific Retail Price Data," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 85-110.
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    Cited by:

    1. Arezoo Ghazanfari & Armin Razmjoo, 2022. "The Effect of Market Isolation on Competitive Behavior in Retail Petrol Markets," Sustainability, MDPI, vol. 14(13), pages 1-33, July.
    2. Arezoo Ghazanfari, 2022. "What Drives Petrol Price Dispersion across Australian Cities?," Energies, MDPI, vol. 15(16), pages 1-24, August.

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    More about this item

    Keywords

    Petrol prices; Regional markets; Markov switching models; Australia.;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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