Tasmanian drivers are being slugged with petrol prices that average around 15 cents per litre higher than the other eastern seaboard states, according to Thursday's price data.
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The price of unleaded fuel in the state yesterday averaged $1.90 per litre - about 12.5 per cent higher than the average of the east coast mainland states.
According to the RACT's chief advocacy officer, Garry Bailey, Tasmanians have always paid at least three to six cents per litre more than mainland drivers.
"There are two influences on Tasmanian fuel prices, one is obviously distance. The travel to get it here," he said.
The other main factor was the lower level of competition among fuel retailers in Tasmania compared to the big five capital cities.
"Because of that competition, there's a lot of discounting to attract customers. That doesn't happen in Tasmania - or at least it happens very rarely," Mr Bailey said.
A spokesperson for major fuel retailer BP said the company aimed to be as competitive as possible to attract customers to its sites.
"The price at the pump is impacted by a number of different factors, including international product prices and competition between service stations in a local area. There are also other factors including exchange rates, taxes and local operating costs," the spokesperson said.
Other fuel retailers including Shell and Ampol did not respond by deadline.
Riverside retail worker Peter Brown, who spends about $80 per week on petrol and is struggling with other cost of living increases such as food and rent, said he was disappointed that Tasmanians paid more.
"It's definitely not fair at all, I mean just look at that stretch of water between us and the mainland, I don't think it justifies having the fuel 20 or 25 cents a litre dearer."
Fuel prices have been falling recently, but are set to rise again at the end of next month, when the Federal government's temporary cut to fuel excise tax expires.
The previous Liberal government cut the excise tax in March, after Russia's sudden invasion of Ukraine sent global crude oil prices higher.
According to price data from the Australian Institute of Petroleum, Tasmanian average prices were just a few cents per litre above the mainland prices.
But the difference widened over the past few days, when mainland prices fell more quickly.
Mr Bailey said while there is little the government can do to eliminate the price differential, individual drivers can take steps to save on petrol.
One of the biggest is to shop around for the biggest discounts by using fuel checking apps, such as the RACT's phone app.
"There is a lot individuals can do to manage their own transport cost - they can keep their tyres correctly inflated, so the rolling resistance is less. Taking the roof racks off, so there's less wind resistance, not accelerating or braking hard - drive very smoothly," he said.
Other measures included driving within the speed limit to save fuel, taking excess weight out of the car, and limiting use of heaters, air conditioners or the radio in the car.
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