Tasmania fuel prices nation's highest

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NewsTasmania fuel prices nation's highest By Hayden JohnsonUpdated August 15 2017 - 10:12am, first published August 14 2017 - 4:30pmBy Hayden JohnsonUpdated August 15 2017 - 10:12am, first

published August 14 2017 - 4:30pmFacebookTwitterWhatsappEmailCopyPrices at bowser ‘hits us harder’ Residents in Northern Tasmania are harder hit than most as average fuel prices in the state

remain the highest in the nation.

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Institute of Petroleum for last week showed Tasmanians paid on average $1.358 per litre of unleaded fuel – the highest average of any state or territory in the nation.

At $1.311, the Northern Territory had the next most expensive pricing.

In Victoria the average cost of fuel was $1.127 per litre.

The price of fuel in Launceston was $1.363, a fraction higher than the state average.

Launceston Chamber of Commerce executive Jan Davis said high fuel prices had a detrimental effect.

“There is no escaping the sharp sting to the hip pocket that people in Launceston experience each time they pull up at the petrol station,” she said.

“There’s little anyone can do about this and, in many cases, businesses find it difficult to pass these costs on if they are to remain competitive.

“Data proves yet again that Northern Tasmanians are harder hit than most.”

In 2016, an Australian Competition and Consumer Commission report into the Launceston petrol market found if the market was more competitive, motorists could expect ongoing savings of about

five cents a litre.

RACT member assist general manager Darren Moody agreed and said Tasmania needed another large wholesale provider to increase competition.

Short of that occurring, Mr Moody said the most effective way to lower prices was a concerted effort by Tasmanians to shop for the cheapest fuel – and share its location.

“Make it known through the GasBuddy app or on social media,” he said.

But Mr Moody acknowledged many consumers purchased fuel out of habit and did not travel in search for the cheapest price.

“Sometimes it’s not economically viable to do it,” he said. 

Mr Moody said station prices around $1.30 were “fair and reasonable”. 

Ms Davis said fuel prices were substantial for businesses, and added pressure to an already difficult environment.

She said since the ACCC report, no action had been taken on “this serious issue”.

“There’s been more than enough talk: now regulators must step in to address this market failure and to ensure fuel costs in Launceston are more reasonably aligned with those on the

mainland,” she said.

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