The Victorian Government and the Victorian Government Purchasing Board (VGPB) have a strategic approach for planning, establishing and managing whole of government contracts to improve value for money outcomes being the State Purchase Contracts Policy. The contract that has followed this strategic process is the State Purchase Contract (SPC) for the Provision of Fuels and Associated Products
The Victorian Government has appointed a panel of four suppliers for the provision of Fuels and Associated Products to all Government Departments, Victoria Police and selected agencies; these being BP Australia Pty Ltd, Caltex Australia Pty Limited, Logicoil Pty Ltd and The Shell Company of Australia Limited.
The arrangement is for a period of three (3) years expiring on 30 June 2013, with two one-year options to extend.
Cheap Fuel Days
The users of this panel contract will continue to find that their buying decisions will be impacted on the cost of fuel. The purchase price to Government will be impacted upon by daily price fluctuations with fuel, which currently operates on weekly pricing cycles. The decision to purchase fuel on the cheap fuel days will contribute to optimise the savings available under this panel.
For purchases in metropolitan areas
The definition of “metropolitan areas” is Melbourne CBD, Geelong, Sunbury, Craigieburn, Pakenham and Mornington. The rest of Victoria would be considered “regional” for this purpose.
The purchase prices in metropolitan areas are impacted upon by daily price fluctuations with fuel. Industry data shows that pump prices throughout the week can increase by 12 cents per litre (cpl) or more. Accordingly, fuel buyers can reduce expenditure by buying on “cheap fuel days”.
A modelling exercise has shown that purchasing fuel on the cheaper fuel days in the Melbourne metropolitan area can find potential savings in the order of $6.00 per week per 60 litres of fuel. This equates to an approximate $312 a year (per car).
Please note that users should be vigilant in the monitoring of the cheaper fuel days. In recent times there has been a movement of the cheaper fuel days and users are encouraged to monitor these movements and use their judgement to purchase fuel on the cheaper days.
Purchases in regional areas
Whilst the differential in pump price fluctuations during the week are less significant than in metropolitan areas, the large regional volume of our purchases, means that potential savings are still significant.
Outside regional centres, the price differentials during the week are less certain. Local buyers in those areas should use their judgement on whether there is any real benefit in targeting a particular day(s) for their fuel purchases.
Summary Comment
It is recognised that emergency and essential services organisations and other purchasers of fuel, will need to depart from the above parameters for operational requirements.
Contract Summary
| Supplier Contractor | Multiple |
| Number of Contracts | 4 |
| Reference | SS-14-2009 |
| Open or Closed | Open |
| Start date | 1 July 2010 |
| End date | 30 June 2013 |
| Lead Entity | Department of Treasury and Finance |
| Category Manager | Elena Avrutis Category Manager, Strategic Sourcing Government Services Division Ph: (+613) 8683 2892 Fax: (+613) 8683 2784 Email: elena.avrutis@dtf.vic.gov.au |
