Cairns still paying dearly at bowser
AN ECONOMIST believes stronger intervention may be needed to disrupt the Cairns fuel market as prices in other regional cities continue to dip.
It comes as Townsville’s fuel prices reached 118 cents per litre (cpl) in some areas this week as the Far North’s stayed at 137.9 cpl at major retailers.
DS Economics chief economist Colin Dwyer said Cairns prices had not followed other regional markets like Townsville, which has dropped down from 143 cpl.
“If you look at Townsville the price was higher in January which had a lot to do with overseas oil. It was the same in Cairns,” he said.
“In Cairns it has dropped off slightly into February, but then it has maintained a similar sort of price from February to July.
“That price has been consistent and hasn’t followed the same path as others.”
New retailer United Petroleum has stuck with its 126.9cpl for unleaded fuel at its Woree outlet.
Australian Institute of Pet- roleum data shows an almost 15 cent difference in weekly average unleaded fuel prices between the two cities.
An Australian Competition and Consumer Commission report found that since 2012-13 Cairns retailers have been making 38 per cent more profit on fuel sales than the average across Australia because of the lack of competition
Mr Dwyer said the market needed “more of a jolt”.
“There is a lot of the private sector that … takes advantage of the profit,” he said. “It is screaming out and suggesting there is a fair bit of play to be had in that market place.”