Petrol prices hit record lows – as long as you’re in the state’s southeast
While the price of petrol falls to the lowest point in a generation in Brisbane, service stations in north Queensland are charging 50 per cent more for fuel and Mount Isa nearly twice as much.
Regional Queensland petrol stations are being accused of price gouging as the divide between the city and country continues at the bowser.
The price of oil went into negative territory in the US for the first time ever this week, as a result of a fall in global demand with planes grounded and much of the world staying at home.
But the benefits of continuing falls in the price of fuel are still not being passed on in many Queensland regions.
While many Brisbane retailers are charging less than 90c per litre for unleaded, in Mount Isa the price is closer to $1.50.
In the central Queensland town of Biloela, the price is about $1.28, while in Longreach it is about $1.40.
Mackay, Townsville and Cairns have been charging between $1.03 and $1.20.
Renee Smith from the RACQ said customers in regional Queensland should not be paying much more than $1 per litre for unleaded petrol.
“In some parts of the state, prices are dirt cheap — we haven’t seen in about 15 years,” Smith said.
“However, we are seeing price gouging in other parts of the state and the prices are way too high.
You might like
“The terminal gate price is down at about 82 cents per litre and yet we are seeing service stations around the state charging well above.”
Generally, regional areas closer to the south-east corner have lower prices — Toowoomba, the Gold Coast, Bundaberg are seeing fuel on sale for less than 90c a litre.
There are also large price differences between towns.
Ingham motorists are paying between $1.09 and $1.27, while 50 kilometres away in Cardwell, residents pay less than $1.
Cheap retailer ‘still making margins’
Some Mount Isa retailers did not want to comment when approached by the ABC.
Others justified their higher prices by saying they needed to remain competitive.
The owner (name withheld) of an independent petrol station in Townsville selling fuel at just shy of $1.03 per litre said he did not understand why others were not dropping their prices.
“I’ve still been making my margins,” they said.
“There’s been a massive increase in customers … a lot of customers have been really happy seeing that I’ve been dropping the price.
“I don’t know why they’re holding them up high — obviously running a different strategy to what I am.”
Geoff Trotter from industry watchdog Fueltrac said the leadership of independents could influence prices.
Stay informed, daily
“Unless the independents are prepared to discount, then those majors invariably won’t,” Trotter said.
He said the difference between Brisbane and north Queensland terminal gate prices was up to eight cents per litre.
“Plus there’s a road freight component that would be higher as well,” he said.
“The sales volumes, I suspect, in [places like] Rockhampton would have dropped quite dramatically in line with most other retail service station areas due to the [coronavirus] restrictions.
“It probably means that dealers have stock that they may well have purchased a week or even longer ago when the wholesale price was higher.”
Motorists urged to monitor prices
Regionally based Queensland politicians have been calling on the ACCC to investigate the issue.
KAP Member for Hinchinbrook Nick Dametto said the ACCC’s response was “toothless”.
“There should be more teeth on the ACCC and there’s more that the Federal Government needs to do,” Dametto said.
Federal Member for Leichhardt Warren Entsch said he could smell a rat with regional petrol pricing.
“You’ve got to ask the question about collusion … there is no doubt in my mind that there is something going on here,” Entsch said.
Smith said it was vital healthy competition was maintained in the regional fuel market.
“If the ACCC sees merit in this, it absolutely should be investigating collusion,” she said.
“That is the only way we could stop this pricing behaviour if there is evidence of collusion.
“We need motorists right now to make use of the real-time fuel data that is available online as part of a trial now … and don’t give your business to those who are overcharging.”
– ABC / Sofie Wainwright and staff
Want to see more stories from InDaily Qld in your Google search results?
- Click here to set InDaily Qld as a preferred source.
- Tick the box next to "InDaily Qld". That's it.
