logo
Fuel is essential, snacks are not: how living costs are hitting Australians' petrol station impulse buying

Fuel is essential, snacks are not: how living costs are hitting Australians' petrol station impulse buying

The Guardian22-03-2025

When Australians pay for petrol, they are exposed to an assortment of chips, chocolates, lollies and drinks designed to trigger an impulse purchase. But business owners have noticed that an increasing number of motorists are no longer buying snacks, as cost-of-living pressures spark a change in consumer behaviour that is denting sales of traditionally popular items.
'When consumer sentiment is off and people are not feeling good about the economy, our non-fuel sales drop; we've certainly seen that over the last 18 to 24 months,' says Mark McKenzie, the chief executive of the Australasian Convenience and Petroleum Marketers Association.
'Fuel is an essential product, but coffee, muffins, chips, chocs and drinks that go with it aren't.'
Shares in Viva Energy, the petrol supplier that operates the Shell service station network, have halved over the past 12 months, dragged lower by weak sales for store products in a trading environment the company describes as 'challenging'.
Shares in Ampol are down almost 40% over the past year, pulled down by losses at its oil refinery operations. But the petroleum company also recently reported a slide in non-fuel shop income.
Sign up for a weekly email featuring our best reads
Unplanned purchases are an important revenue stream to service station owners, given the profit margin on a pack of Twisties is about double that of fuel, although petrol is sold at much higher volumes.
The pullback in impulse buys is most evident when fuel prices breach $2 per litre, according to McKenzie, because that pushes the cost of a typical 50 litre refill past the $100 mark.
'That three-figure sum really focuses their attention on whether they can afford a coffee with their fuel,' says McKenzie.
'It triggers something in the consumer's mind and they become far more reluctant to purchase non-essential items.'
Research company IbisWorld notes the same trend is hitting standalone convenience stores, with a reduction in foot traffic and inflationary concerns deterring impulse purchases.
Store owners have also had to grapple with the vape ban and illicit tobacco sales luring their customers away.
'Rough trading conditions have battered convenience stores in recent years,' IbisWorld says.
'Stores are struggling to entice customers, who are less likely to engage in impulse purchases and are instead opting for less costly options when grocery shopping.'
The challenges are prompting petrol station and convenience store owners to revamp their businesses, with many offering ready-made meals to entice value-conscious shoppers.
Sign up to Five Great Reads
Each week our editors select five of the most interesting, entertaining and thoughtful reads published by Guardian Australia and our international colleagues. Sign up to receive it in your inbox every Saturday morning
after newsletter promotion
The move taps into the 'trading down' trend of Australians looking for more affordable meals amid persistent living cost pressures.
To entice non-petrol purchases, service stations are increasingly offering eat-in cafe items and hot meals as part of a road house-style fit-out.
Others have partnered with chains, including Boost Juice, or have carved out a niche to ensure they become a destination venue with plenty of repeat customers.
Hollie Fox says her family-owned business near the Gold Coast airport has protected itself against a downturn by offering products that customers can rarely find at a service station.
'We're not really a petrol station any more; we're sort of a grocery store selling fuel,' says Fox, from The Fox's Pantry.
The business offers organic produce, as well as homemade meals like chicken curry with a bone broth base. It stopped selling cigarettes just over a year ago, and is close to getting rid of its big brand soft drinks altogether.
'We've only got one door left of traditional drinks, such as Coca-Cola and Sprite, but we're very close to making the switch because we've got so many alternatives,' says Fox.
'It takes a bit of time to educate customers, so we change things slowly, otherwise people freak out.'

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

How much in superannuation do you need in Australia to retire?
How much in superannuation do you need in Australia to retire?

Daily Mail​

time3 hours ago

  • Daily Mail​

How much in superannuation do you need in Australia to retire?

Australians may need less superannuation to retire comfortably than previously thought. AustralianSuper, a union-backed industry fund, has released new research showing that 94 per cent of Australians get by with less than seven figures in superannuation. The Association of Superannuation Funds of Australia recommends $595,000 for a single to have a comfortable retirement. Comfortable is defined as an overseas holiday every seven years and a getaway within Australia annually. Ross Ackland, AustralianSuper's head of advice and guidance, said many could still live a comfortable retirement with well short of $1million if they have the right planning. 'Some people think they need to be chasing a seven-figure balance to live well in retirement, but many Australians are thriving with less because they've planned around their lifestyle, not just a number,' he said. Financial guru Scott Pape said Aussies could easily retire on much less than what was quoted by The Association of Superannuation Funds of Australia, which he said was out of reach for most people. 'The ABS says that the median super balance on retirement is $250,000 for men and $200,000 for women,' he said on his Barefoot Investor website in 2022. 'So for an average working Aussie, why bother trying?' Pape also cautions that super funds may inflate retirement savings targets because they want people to invest more. 'The people who calculate the ASFA figure are … the super fund lobby. It's a bit like asking old Dr Kellogg, "What's the most important meal of the day?" (Breakfast, of course!) 'If you own your own home, get the aged pension, and you're willing to do a bit of paid work, you could comfortably retire on as little as $250,000,' he said on his website. He also revealed what he thought was the best figure, based on data from Super Consumers Australia. 'A group called Super Consumers Australia (a partner of CHOICE) has done the research and come up with their own figures. 'Not only are their figures much more attainable, they're based on ABS research on what Aussie retirees spend. Super Consumers Australia estimates that a single homeowner needs about $310,000 in superannuation, and a couple needs around $420,000, at retirement to maintain their current living standards throughout retirement. 'Combined with income from the age pension, homeowners with this amount of super can reliably provide an annual amount of $43,000 and $62,000 until age 90,' it said earlier this year. Only one in five Australians retired with more than $500,000 in super during the past five years, acording to a YouGov poll of 1,000 people commissioned by AustralianSuper. Almost half, or 44 per cent, retired with less than $100,000 in super. A third, or 35 per cent, retired with $100,000 to $499,000 in super. Tax office data shows Australians typically have $164,126 in superannuation. Average-income men in their early sixties typically had $218,169 in super compared with $195,507 for women. Those with more than $500,000 in super typically earned more than $180,000, putting them in the highest income tax bracket. Australians can access their super at 60 but have to wait until 67 to qualify for the age pension. Just 0.5 per cent of Australians have more than $3million in super and this group of 80,000 Australians face a new 15 per cent tax on unrealised gains in their account. This means they would be taxed on paper gains before assets are sold, should Labor's legislation get through the Senate as expected. The headline rate of super earnings taxes, for balances above $3million, would double to 30 per cent, based on the 15 per cent unrealised gains tax and an existing 15 per cent tax on earnings during the accumulation phase of super. AustralianSuper released its findings as the Australian Prudential Regulation Authority chastised Australia's biggest super funds for failing to adequately prevent cyber attacks in April. 'Although APRA has consistently emphasised the importance of robust cyber security, it is clear that current controls are not always commensurate with the evolving vulnerabilities and threats, nor with the criticality and sensitivity of the member data and assets they protect,' it said in a letter to superannuation funds on Tuesday. AustralianSuper was hacked in April, along with industry super funds Australian Retirement Trust incorporating QSuper and Sunsuper, REST and Hostplus. Customers of Australia's top four funds were locked out of their accounts after a cache of passwords was stolen. Insignia Financial was also affected, as the owner of MLC, Australia's biggest retail super fund and ninth most popular retirement product overall Super funds have recovered from the early market uncertainty over new US trade tariffs, with average gains of 2.6 per cent in May for balanced-option funds, new SuperRatings data showed. But SuperRatings executive director Kirby Rappell said uncertainty was likely to persist. 'As we approach the end of the financial year, we see that investors seem to be able to look past tariff uncertainty,' he said. 'Following the positive month it appears funds are back on track for a strong financial year result, despite the noise and uncertainty. 'While this will likely be a relief for members, we can see that volatility is likely to remain for some time.'

Nicholas hails Cummins as cricket's statesman
Nicholas hails Cummins as cricket's statesman

South Wales Argus

time4 days ago

  • South Wales Argus

Nicholas hails Cummins as cricket's statesman

Cummins is to be interviewed on day two, June 8, as part of a session entitled 'The Commercial Opportunity of Sustainability', which also features a presentation from the Cricket for Climate group. That organisation was co-founded by the seamer, who regularly uses his platform to voice concerns surrounding environmental issues in cricket, and Nicholas believes his impact is only growing. 'Pat has got enormous respect both on and off the field from everybody,' he said. 'There is nobody in the game that would say a bad word about him or doubt him. There is nothing about him that looks false, he is the real deal. So, when he speaks, it is interesting. 'His heart is in climate control, without a doubt. He has always been environmentally aware, he is not talking from a sudden bout of care, this has always been in him. 'He is probably, right now, cricket's foremost representative. Now that Virat Kohli has stood down (from Test cricket), Pat Cummins has moved into that spot alongside Ben Stokes. 'If you were asking who the superstars are who command global respect, in a way that people listen to what they say, applaud their performance and they still stay top of the rankings, they are the three.' Themes including the state of the game, franchise cricket, women's cricket and 'is cricket cool?' will be up for discussion at Lord's, with panellists from a range of backgrounds invited to take part. Nicholas, who has been a regular contributor to Channel 9 over the years, is particularly intrigued to hear from Australian representatives regarding franchise cricket amid what he sees as a drop-off in the impact of the Big Bash. 'The Big Bash has gone quiet,' he said. 'It sure came in with a big bash, it was fantastic. 'But to me, from afar – and I haven't been in Australia full-time for seven years now – it needs to look at itself internally. Quite a few of the important Australians are going to be here, not least the new CEO (Todd Greenberg), so it will be interesting to see where they are with that.' A World Cricket Connects Advisory board, chaired by Kumar Sangakkara and featuring former Australia captain Mel Jones, has been established since the inaugural forum last year. Jones has had a significant impact in helping Afghanistan's displaced women's team find opportunities to play in Australia while the MCC founded the Global Refugee Cricket Fund earlier this year. Its initial focus is supporting the Pitch Our Future campaign - an Australian-led programme that empowers and supports players from the former Afghanistan Women's Cricket Team – after the topic was raised at World Cricket Connects. 'People wanted action, they were horrified by what had happened to Afghanistan's women's cricketers,' Nicholas said. 'Once it became obvious there was a way to support it through our foundation, we were very quick to do so. 'One of MCC's great strengths is that we give back to cricket to an extraordinary level, a level that cuts our surplus every year in half. 'I feel we should always try and help initiatives like that, that's exactly where MCC can fit. I really feel that was in our wheelhouse.'

Nicholas hails Cummins as cricket's statesman
Nicholas hails Cummins as cricket's statesman

Glasgow Times

time5 days ago

  • Glasgow Times

Nicholas hails Cummins as cricket's statesman

Cummins is to be interviewed on day two, June 8, as part of a session entitled 'The Commercial Opportunity of Sustainability', which also features a presentation from the Cricket for Climate group. That organisation was co-founded by the seamer, who regularly uses his platform to voice concerns surrounding environmental issues in cricket, and Nicholas believes his impact is only growing. 'Pat has got enormous respect both on and off the field from everybody,' he said. 'There is nobody in the game that would say a bad word about him or doubt him. There is nothing about him that looks false, he is the real deal. So, when he speaks, it is interesting. 'His heart is in climate control, without a doubt. He has always been environmentally aware, he is not talking from a sudden bout of care, this has always been in him. 'He is probably, right now, cricket's foremost representative. Now that Virat Kohli has stood down (from Test cricket), Pat Cummins has moved into that spot alongside Ben Stokes. 'If you were asking who the superstars are who command global respect, in a way that people listen to what they say, applaud their performance and they still stay top of the rankings, they are the three.' Themes including the state of the game, franchise cricket, women's cricket and 'is cricket cool?' will be up for discussion at Lord's, with panellists from a range of backgrounds invited to take part. Nicholas, who has been a regular contributor to Channel 9 over the years, is particularly intrigued to hear from Australian representatives regarding franchise cricket amid what he sees as a drop-off in the impact of the Big Bash. 'The Big Bash has gone quiet,' he said. 'It sure came in with a big bash, it was fantastic. 'But to me, from afar – and I haven't been in Australia full-time for seven years now – it needs to look at itself internally. Quite a few of the important Australians are going to be here, not least the new CEO (Todd Greenberg), so it will be interesting to see where they are with that.' A World Cricket Connects Advisory board, chaired by Kumar Sangakkara and featuring former Australia captain Mel Jones, has been established since the inaugural forum last year. Jones has had a significant impact in helping Afghanistan's displaced women's team find opportunities to play in Australia while the MCC founded the Global Refugee Cricket Fund earlier this year. Its initial focus is supporting the Pitch Our Future campaign - an Australian-led programme that empowers and supports players from the former Afghanistan Women's Cricket Team – after the topic was raised at World Cricket Connects. 'People wanted action, they were horrified by what had happened to Afghanistan's women's cricketers,' Nicholas said. 'Once it became obvious there was a way to support it through our foundation, we were very quick to do so. 'One of MCC's great strengths is that we give back to cricket to an extraordinary level, a level that cuts our surplus every year in half. 'I feel we should always try and help initiatives like that, that's exactly where MCC can fit. I really feel that was in our wheelhouse.'

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store