Now is a great time to fuel up
THE perfect mix of conditions has driven petrol prices in Townsville below what motorists pay in Brisbane.
The price of unleaded fuel in the city has declined since January, when there was high of about $ 1.43 a litre.
Yesterday the average price in Townsville was about $ 1.23/ L.
The price in Brisbane, affected by a cycle in the southeast, has fluctuated wildly in the same period, with the average there yesterday $ 1.27/ L.
Competition and low international oil prices were the likely reasons for the price fall in Townsville, according to Colin Dwyer from DS Economics.
“Puma has recently entered the market and opened several petrol stations and competition usually fuels price competition,” he said.
“A third reason could be that economic conditions are reducing demand and residents have been reducing driving as a means of saving.”
Mr Dwyer has closely watched petrol prices in Townsville over the past decade and said motorists in northern Queensland historically paid about 20c/ L more than in Brisbane. The economist said the disparity should only be about 5c/ L, given extra freight costs involved.
“With the reduction in petrol prices we should see a significant benefit to the community in its ability to spend,” Mr Dwyer said.
“The money will be saved or spent in other areas like local businesses.
“It’s a boon for business and a boon for householders.”
TP Human Capital managing director Clayton Cook said the price drop was good news given the tough economic climate in Townsville.
“Buying fuel for most people is an essential part of daily life,” he said.
Mr Cook said businesses, particularly transport and mining companies, would make major savings.
RACQ’s Lucinda Ross said motorists should support petrol stations with cheaper prices. She said prices in southeast Queensland were governed by a petrol price cycle, with Brisbane now in an expensive phase, but there was no cycle in regional Queensland.