Tasmania’s isolated location and the cost of transporting petroleum should not add a significant increase to the cost of fuel, the Australian Competition and Consumer Commission discovered.
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On Monday, the Launceston Chamber of Commerce called for more to be done to combat Tasmania’s high fuel prices.
This state pays about 23 cents a litre more for unleaded fuel than Victoria.
Tasmania’s petrol comes from refineries and terminals in other Australian cities, or from overseas refineries.
In 2016, the ACCC investigated the contributing factors to Launceston’s petrol market.
It found in 2014–2015 the cost of bringing petrol into Tasmania was about two cents a litre higher than bringing petrol into the five largest mainland cities.
The report noted shipping costs to Tasmania are higher than to mainland Australian ports because of its distance from Singapore – the major export hub in the Asia-Pacific.
Andrey Firsov is the managing director of Petrol Spy, an app that allows consumers to locate the cheapest fuel locations.
Mr Firsov said Australia had comparable fuel prices to the rest of the world, and said Tasmania’s higher prices was likely due to the cost of freight.
”Compared to Europe we’re a lot cheaper, but more expensive than in the United States, which is subsidised by the government,” he said.
The ACCC report also found operating costs, on a per litre basis, were higher in Launceston at the wholesale and retail level because of the smaller size of the market and the low volume sold at most retail sites.
The price difference between Hobart and regional Tasmania is closer due to the state’s size.