PETROL PINCH

Fuel fury: Tasmanian prices ‘too high’

THE country’s competition regulator has been asked to investigate Tasmanian fuel costs, with data showing pump prices are still too high despite recent drops of up to 35 cents a litre.

State and federal MPs have written to the ACCC to request an investigation, with further price monitoring measures also still being considered to tackle persistent pain at the bowser.

THE competition regulator has been asked to investigate Tasmanian fuel costs, with data showing pump prices are still too high despite recent drops of up to 35c a litre.

Hobart motorists are paying about 124.3c a litre for petrol — almost 30c more than the national average of 94.9c, according to the latest Australian Institute of Petroleum report.

The Australian Competition and Consumer Commission said the state’s fuel prices were too high and Australians did not expect to be dealing with high fuel prices during this time of crisis.

Franklin Labor MP Julie Collins said Tasmanians were continuing to be ripped off at the bowser.

“The Australian Capital Territory

and Northern Territory governments [have] threatened to cap prices and retail margins to deliver cost-of-living relief for motorists,” she said.

“But last week the only thing the Premier could offer Tasmanians fed up with high fuel costs was advice for motorists to ‘shop around’.”

Attorney-General Elise Archer said she had written to the ACCC to request an investigation into the issue, with further measures also being considered.

“It has been reported to me that the price of fuel as advertised at many retailers in Tasmania is not reducing in line with other jurisdictions,” she said. “I urge all fuel retailers in Tasmania to ensure that any global price reductions are passed on to Tasmanian motorists as a matter of priority.

“The Government would expect that petrol retailers that passed on savings would see an increase in their business.”

Ms Archer said the Government was still considering a proposal by the RACT for mandatory fuel price reporting.

“Such consideration needs to take into account effectiveness, cost and level of regulatory burden.”

An ACCC spokeswoman said while Tasmanian petrol prices had dropped by about 30c to 35c a litre since the coronavirus crisis started, prices had further to fall.

“In many regional locations, retail prices have been much slower to come down than in the larger cities in response to the reduction in international oil prices,” she said.

“Fuel prices are generally higher in regional Australia due to a number of factors, including lower population and demand, meaning there are fewer petrol stations, which often leads to less competition.

“There are also higher costs for transport and storage of fuel, and less convenience sales which can support petrol retailers’ operation costs when fuel prices are low.”

Federal Labor MPs have also written to the ACCC, calling for more to be done to combat Tasmania’s “outrageous” fuel prices.