RACT general manager mobility services Darren Moody said motorists in Launceston and Hobart were paying an average retail price of $1.55 per litre which is 25 cents per litre higher than the wholesale price.

"We believe the retail price should be in the low $1.40s per litre," Mr Moody said.

"Tasmanians will be familiar with the price escalating quickly at the hint of any global unrest and taking some time for the price to come down."

Mr Moody said any retailer doing the fair thing and selling petrol at $1.43 per litre or less deserved the support of motorists.

"This will increase competition in these areas and encourage other retailers to drop their prices in order to maintain their market share," he said.

"Fuel retailers need to justify to Tasmanian motorists their reasons for consistently charging $1.55 per litre when the wholesale terminal price has been decreasing over the last few weeks."

He also reiterated the RACT's call for the state government to introduce real-time fuel price monitoring.

The body is calling for a similar system to FuelCheck in New South Wales.

An analysis completed by the NRMA showed fuel prices fell in the Sydney metropolitan market since the introduction of FuelCheck in 2016.

A petition by the RACT calling for the government to introduce real-time fuel price monitoring has been signed by almost 9500 people.

Tasmanian Small Business Council chief executive Robert Mallett said the RACT's request for retailers to reduce their petrol prices was absolutely fair.

"It's the role of the RACT to look after their members and motorists but at the same time the people looking after their motorists are petrol retailers who are selling petrol at the cheapest possible price," Mr Mallett said.

"Business is business and customers should support the most competitive price and best service out there."

Mr Mallett said real-time fuel price monitoring may drive down prices but said he did not think people would check the service every time they filled up the car.

"I don't know how many people use this type of service," he said.

A government spokesperson said the state was committed to listening to the RACT and Tasmania drivers about measures to address petrol pricing.

"As previously stated, the government is committed to ensuring consumers in Tasmania get a fair deal compared to their interstate counterparts, particularly given the cost of fuel as a significant component of running a business," the spokesperson said.