RACQ urges Cairns servos to sell fuel at a “fair price” this Christmas

QUEENSLAND’S peak motoring body has warned Cairns service stations against hiking “already too high” fuel prices over the festive season.

Man pumping fuel into his car.

QUEENSLAND’S peak motoring body has warned Cairns service stations against hiking “already too high” fuel prices over the festive season.

RACQ has once again called on the Australian Competition and Consumer Commission to investigate fuel prices in the city, where motorists are slugged 15c more a litre than what it considers fair.

“The average price for unleaded in Cairns (on Tuesday) was $1.37 a litre,” said RACQ spokeswoman Renee Smith.

“We believe a fair price is $1.229 a litre.

“We calculate that by looking at the price of oil, terminal gate price and any reasonable costs and margins.

“If there was an increase in Cairns ahead of Christmas, we believe that would be completely unjustified.

“Prices are already too high, to go even higher would be uncalled for.

“What they should be doing is giving motorists an early Christmas present and dropping prices to what is fair.”

United Petroleum’s first Far Northern site at Koah, between Kuranda and Mareeba, continues to undercut its competitors in Cairns and was yesterday selling unleaded fuel for $1.299 a litre and diesel for $1.199 a litre.

The prices have earned a loyal customer in Tinaroo man Ian Lummis, who is sick of “getting ripped off” in Cairns.

“It’s a welcome relief, we normally go down the Gillies Range through Gordonvale to reach Cairns but now we always make sure we catch up with the servo either going down or coming back,” he said.

“As far as I’m concerned, anyone who puts prices like that out, people should support them as much as possible.”

Mr Lummis believes United’s pricing strategy is having an impact, with a Emerald Creek service station offering cheaper diesel in recent weeks.

Ms Smith urged motorists to shop around for fuel rather than waiting until they were on empty to fill up, use RACQ’s online fair fuel price calculator, and support service stations selling reasonably-priced fuel.

Originally published as RACQ urges Cairns servos to sell fuel at a “fair price” this Christmas