‘Rip-off’ prices fuel calls for probe into Tasmania’s petrol costs

Petrol prices may have fallen significantly across Tasmania in recent weeks, but a new report says they are still too high – and the ACCC has been asked to investigate.

THE country’s competition regulator has been asked to investigate Tasmanian fuel costs, with data showing pump prices are still too high despite recent drops of up to 35 cents a litre.

Hobart motorists are paying about 124.3 cents a litre for petrol – almost 30 cents a litre more than the national average of 94.9 cents, according to the latest Australian Institute of Petroleum report.

The Australian Competition and Consumer Commission said the state’s fuel prices were currently too high, and that Australians did not expect to be dealing with high fuel prices during this time of crisis.

Franklin Labor MP Julie Collins said Tasmanians were continuing to be ripped off at the bowser.

“Just this week, the Australian Capital Territory and Northern Territory governments threatened to cap prices and retail margins to deliver cost of living relief for motorists,” she said.

“But last week the only thing the Premier could offer Tasmanians fed up with high fuel costs was advice for motorists to ‘shop around’.”

Building and Construction Minister Elise Archer said she had written to the ACCC to request an investigation into the issue, with further measures also being considered to tackle the problem.

“It has been reported to me that the price of fuel as advertised at many retailers in Tasmania is not reducing in line with other jurisdictions,” she said.

“I urge all fuel retailers in Tasmania to ensure that any global price reductions are passed on to Tasmanian motorists as a matter of priority.

“The Government would expect that petrol retailers that passed on savings would see an increase in their business.”

Building and Construction Minister Elise Archer. Picture: CHRIS KIDD

Ms Archer said the Government was still considering RACT’s proposal for mandatory fuel price reporting.

“Such consideration needs to take into account effectiveness, cost and level of regulatory burden,” she said.

An ACCC spokeswoman said while Tasmanian petrol prices had dropped by about 30 to 35 cents a litre since the coronavirus crisis started, prices still had further to fall.

“In many regional locations, retail prices have been much slower to come down than in the larger cities in response to the reduction in international oil prices, and the extent of the falls has varied widely,” the spokeswoman said.

“Fuel prices are generally higher in regional Australia due to a number of factors, including lower population and demand, meaning there are fewer petrol stations, which often leads to less competition.

“There are also higher costs for transport and storage of fuel, and less convenience sales which can support petrol retailers’ operation costs when fuel prices are low.”

Federal Labor MP for Franklin Julie Collins. Picture: RICHARD JUPE.

Federal Labor MPs have also written to the ACCC calling for more to be done to combat Tasmania’s “outrageous” fuel prices.

“It is completely unacceptable that Tasmanians are losing out during a period of such significant community anxiety,” Ms Collins said.

“It is clear much more needs to be done to ease the impact on the hip pocket of Tasmanian motorists.”