Disgraceful petrol study

THE results of a study of the Cairns petrol market by the Australian Competition and Consumer Commission are not surprising.

We’ve known for years we have been ripped off by fuel retailers but now we know the extent.

According to the ACCC fuel retailers in Cairns make 38 per cent more net profit on sales than elsewhere in Australia.

The simple reason is the lack of competition.

Motorists are paying on average 11 cents per litre more than those in capital cities.

The ACCC is hoping the 61-page study will put pressure on retailers to reduce prices as it has done in Darwin. Wishful thinking. The retailers are making so much money in Cairns that they frankly don’t care about their customers.

They know motorists won’t bother to drive extra kilometres and detour off main roads to cheaper outlets at Machans Beach, White Rock or the Tablelands.

Not one of the big retailers has the courage to offer lower prices and start a price war.

United have at Koah and Innisfail but there is no United outlet in Cairns.

The study found that since United started trading in Innisfail in February 2016, retail petrol prices had been generally lower than in Cairns.

Other towns such as Mareeba and Atherton have also had lower petrol prices than Cairns in recent years.

The ACCC suggests increased petrol price transparency, regular reporting on wholesale petrol prices and retail margins and new competitively priced retailers entering the market may lead to competition

However, this is highly unlikely. Nick Dalton nick.dalton@news.com.au