Cost of filling diesel tanks makes an off-road trip a costly day out

Off road enthusiasts say filling a tank with diesel makes a day out in the 4WD a costly one as all motorists brace for even higher fuel prices. PRICE PROJECTIONS >>

MOTORISTS with diesel vehicles are not being spared the pain at the pump with prices nudging $2.50 a litre at the cheapest bowsers in Hobart.

Aaron Wells from the Trekka 4wd Club said the cost of filling the tank was deterring off road enthusiasts from going too far afield.

That in turn hurts the small communities in which 4WD clubs historically spent their money.

“The vast majority of 4WD vehicles are diesel and it certainly is impacting us in regard to how often we want to go out,” Mr Wells said.

“We usually head out of town into the Huon and other places further afield.

“The cost of everything is going up and spending $100 on half a tank of diesel, which is about the average I use on one trip, makes it an expensive day out.

“That means we are then not spending money in small towns we usually visit to buy lunch and other things.

Aaron Wells of Hobart who is member of Trekka 4WD club and owns a diesel vehicle. The cost of diesel rapidly increase has meant that activities within the club come at a huge financial cost. Picture: Nikki Davis-Jones

“Another impact is the equipment we buy for our vehicles is also costing more to ship.

“I think the government really needs to consider extending the cut to the fuel excise. Excise is still a big slice of the pie and they can hardly cry poor.”

The cheapest diesel available in the capital on Sunday was $2.49.99 a litre at two outlets in New Town.

The price is up to over $2.70 a litre at some smaller regional outlets.

Tasmanians have been warned to brace for unleaded petrol prices in excess of $2.50 a litre by the end of the year, as the federal government prepares to wind back a cut to the fuel excise.

The price of oil has soared in the wake of Russia’s invasion of Ukraine and the European Union is set to ban 90 percent of Russian oil by the end of the year, which RACT chief executive Garry Bailey said would see prices rise further.

“Tasmanian motorists are facing a petrol price more than $2.50 a litre by September if prices continue to rise and the fuel excise cut of 22.1c a litre is withdrawn by the federal Labor government,” he said.

“The only lever that will help is not restoring the full fuel excise. And as prices rise there will be great consumer pressure on the federal government to act.”

Experts say brace for sky high petrol prices

Tasmanians are being warned to brace for unleaded petrol prices in excess of $2.50 a litre by the end of the year, as the federal government prepares to wind back a cut to the fuel excise.

The price of oil has soared in the wake of Russia’s invasion of Ukraine and the European Union is set to ban 90 per cent of Russian oil by the end of the year, which RACT chief executive Garry Bailey said would see prices rise further.

Garry Bailey

“Tasmanian motorists are facing a petrol price more than $2.50 a litre by September if prices continue to rise and the fuel excise cut of 22.1c a litre is withdrawn by the federal Labor government,” he said.

“The only lever that will help is not restoring the full fuel excise. And as prices rise there will be great consumer pressure on the federal government to act.”

Paul Honeywood of Lucaston. The Grove Store that sells fuel under the Ampol brand and is one of the more affordable options at the moment. Picture: Nikki Davis-Jones

The previous government implemented a six-month 22.1c a litre cut to the excise in the March budget amid growing cost of living pressures across the country.

While this led to prices falling below $2 a litre, they have now crept up once more, with unleaded fuel costing an average of $2.22 a litre in Tasmania on Saturday.

But federal Treasurer Jim Chalmers has indicated that the new government won’t be keeping the excise cut in place beyond its September expiry date, acknowledging the decision was “difficult”.

“Obviously, we factor in the conditions as they evolve, and the budget and all of the rest of it,” he told a Guardian Australia podcast on Saturday.

“But nothing has substantially changed to make me think that we could continue (the relief) indefinitely, or even for a substantially longer period than September.”

Ampol Lewisham Service Centre owner Maz Elali is keeping his prices as low as he can, fearing the impact any hike could have on local residents struggling to make ends meet.

“We just (get) two or three cents profit (per litre of fuel sold) just to cover the EFTPOS machine pretty much,” he told the Sunday Tasmanian.

“I’m making enough (money) to put food on the table for my family and that’s more than enough.”

The Lewisham Service Centre was selling regular unleaded fuel for $2.09 a litre on Saturday and diesel for $2.37 a litre.

Max Elali at Lewisham Service Centre continues to keep prices low (Picture from February, 2022). Picture: Linda Higginson

Tasmanian Council of Social Service chief executive Adrienne Picone said the “seismic” increase in fuel prices was hitting low income Tasmanians hard “at a time they can ill afford it”.

“In our consultations with Tasmanians, transport repeatedly comes up as a sore point in their lives, affecting some Tasmanians more than others, and usually those already facing barriers to participating fully in Tasmania’s social, cultural and economic life,” she said.

TasCOSS CEO Adrienne Picone. Picture: Chris Kidd

To combat exorbitant fuel prices, Ms Picone called on the state government to make public transport free for seniors, concession card-holders and students and to bring non-metropolitan bus fares in line with Metro Tasmania fares.

She also said federal Labor needed to increase the “abysmally low” JobSeeker income support payment.

Consumer Affairs Minister Elise Archer said the Tasmanian government had pressed the previous federal government to lower the fuel excise.

“I would urge the now Labor federal government to consider how they may continue to provide relief for Australians struggling with the high cost of fuel,” she said.

SOME OF TASSIE’S CHEAPEST PETROL (SATURDAY, JULY 2):

• Ampol Cambridge, Cambridge: 209.7 c/L (u91); 237.7 c/L (DL)
• Shell Tas Petroleum Cambridge, Cambridge: 209.7 c/L; 237.7 c/l (DL)
• Ampol Lewisham Service Centre: 209.9 c/L (u91); 237.9 c/L (DL)
• Ampol Grove Store, Grove: 210.0 c/L (u91); 236 c/L (DL)
• Sandfly General Store, Sandfly: 210.0 c/L (u91); 236 c/L (DL)
• Shell Tas Petroleum Burnie River Rd, Wivenhoe: 211.9 c/L (u91); 235.9 c/L (DL)
• Shell Tas Petroleum East Devonport, East Devonport: 213.9 c/L (u91); 235.9 c/L (DL)
• United Sandy Bay, Sandy Bay: 213.7 c/L (u91); 244.9 c/L (DL)
• United York Park, Invermay: 221.7 c/L (u91); 241.7 c/L (DL)

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