Reports yesterday that petrol prices are on the rise will come as rather unwelcome news to Tasmanian motorists.
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Tasmanians already pay one of the highest prices in the country for their fuel, a fact that lead to a Australian Competition and Consumer Commission study into the cost of petrol in Launceston.
In November last year, ACCC deputy chairman Dr Michael Schaper said Tasmanians had been exposed to dubious fuel prices for too long.
Launceston was one of three regional areas earmarked for an ACCC petrol market case study following a chorus of complaints.
The findings into the Launceston study were due out “in early 2016”, but so far there has been no announcement by the ACCC.
As early as January this year, Sydney motorists were paying as little as $1 a litre for their fuel, while Launceston drivers were topping up at $1.31 a litre at the same time.
It’s a huge discrepancy and despite claims of low levels of competition being one of the major factors, it still leaves a bitter taste in the mouth of many Tasmanian drivers.
In a bid to be proactive, the state’s peak motoring group – the Royal Automobile Club of Tasmania – teamed up with independent fuel company United Petroleum to offer all RACT members access to an 8c a litre fuel discount.
That discount has dropped to 6c a litre now, but it still undercuts the 4c a litre discount to the major supermarket chains offer to their shoppers when they fill up the car.
All of this will be little comfort, however, when prices start to rise again in Tasmania.
According to a CommSec report released on Monday, the national average price of unleaded climbed to a four-month high of 119.1 cents a litre, while the wholesale price of fuel rose to 113 cents a litre – a jump of 1.8 cents over the price a week ago. (To give that figure some perspective, most gross retail margins are about 8 to 10 cents a litre).
The increase has yet to be felt in Tasmania, but if history is anything to go by, there’s little doubt fuel price pain is on the way.
Unfortunately, Tasmanian drivers have little to gain from shopping around – there just isn’t the same differential in prices as you’d find in major mainland centres.
The harsh reality is that unless you’re willing to pay more for your petrol to support an independent owner, then shopper dockets are the only solution.
