Now is a great time to fuel up

Townsville Bulletin - - NEWS - AN­DREW BACKHOUSE

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.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.