Tassie petrol prices called fair but watchdogs on alert

THE RACT has described Tasmanian petrol prices as fair and reasonable as the Federal Government and ACCC talk up action as prices rise.

RACT general manager mobility services Darren Moody said the margin between wholesale prices and the bowser price had been in a good range.

The wholesale price, known as the terminal gate price, for unleaded petrol in Hobart yesterday was 148.1 cents a litre compared with the pump price of 161.19 cents.

“What we have seen lately is an increase in wholesale cost of fuel but we feel the retailer is absorbing those costs,” he said.

“The retail price just crept up over 160 cents a litre yesterday compared with some areas in Sydney where the price is more than 165 cents a litre.

“We think the early 160s is in the reasonable area.”

Tasmanian prices have been sitting at around 159.9 cents a litre for several weeks.

The Federal Government says it will take action if drivers are being ripped off at the petrol bowser.

Australian Competition and Consumer Commission chair Rod Sims believes drivers are paying three cents a litre more than usual.

“In our view, margins are two to three cents a litre too high,” Mr Sims told Melbourne radio station 3AW.

“That’s $400-600 million — that’s a lot of money for Australian motorists.”

Treasurer Josh Frydenberg said the Government would consider any suggestions by the consumer watchdog to push down petrol prices after the cost of premium petrol hit $1.90 a litre in the past week.

“If they make any recommendations to government then, of course, we will favourably consider those,” he said.

“What we understand about our petrol market is that it is driven to some extent by what happens overseas, with the Australian dollar, but also with global oil prices. But if companies here are ripping off consumers then we will take action.”

Mr Sims said 35 per cent of the cost of petrol was tax and that Australians were paying a fuel excise of 41 cents on top of the GST.

The tax is meant to fund roads but he says it’s questionable whether the taxation level is appropriate.