Fuel prices across Australia have risen sharply in recent weeks, driven by the ongoing conflict in the Middle East and the disruption to global oil supply through the Strait of Hormuz. Average petrol prices have jumped by close to 50 cents per litre in the space of a few weeks, and customers are understandably frustrated. For independent service station operators, how you handle that frustration can make the difference between keeping a loyal customer and losing them to a competitor.
The first thing to understand is that most customers do not blame the operator personally for global oil prices. What they do react to is feeling like they are being taken advantage of. The ACCC has publicly called on fuel retailers to be open and honest about the reasons for price increases, and has written directly to major fuel companies seeking explanations. That same expectation applies at the local level. If a customer asks why prices have gone up, a clear and honest answer goes a long way.
You do not need to be an energy market analyst to explain what is happening. A simple, factual response is enough. Something along the lines of wholesale fuel costs have increased significantly due to the situation in the Middle East, and those costs are passed through to the retail price. Most reasonable customers will accept that. What erodes trust is silence, deflection or the perception that prices went up faster than they needed to.
Signage can also help. A brief, visible notice at the counter or on the forecourt acknowledging that prices are being affected by international supply disruptions shows customers that you are aware of the impact and not ignoring it. It does not need to be long or detailed. A few sentences that are honest and respectful of your customers is all that is required.
For operators who use social media or email newsletters, a short post addressing the situation can also be effective. Acknowledge the frustration, explain the external factors at play, and reinforce that you are doing your best to keep prices as competitive as possible. This kind of proactive communication builds credibility and helps to position your site as one that deals with customers fairly.
It is also worth being mindful of how your pricing compares locally. The ACCC is actively encouraging consumers to use fuel price apps to shop around, and is monitoring pricing behaviour closely. If your prices are significantly higher than nearby competitors without good reason, that will be noticed by both customers and regulators. Not every independent operator has the same wholesale cost, and some will inevitably pay more depending on their supplier arrangements. But staying competitive where possible and being transparent about your pricing approach is the safest position to be in during a period like this.
Price spikes are temporary, but the trust you build or lose with your customers during these periods has a lasting effect. Operators who communicate openly and treat their customers with respect will come out of this in a stronger position than those who stay silent and hope it blows over.