Fuel demand, Aussie dollar to blame for rocketing prices at Tasmanian bowsers

With petrol and diesel prices in Tasmanian currently tracking northward, the RACT has advised motorists to shop around when filling up at the bowser. Are you paying too much at your local?

Shop around when filling up at the bowser.

That’s the message from key motoring body RACT as fuel prices remain stubbornly north of $2 a litre at most outlets across the state, and at a time when diesel remains more expensive than unleaded.

According to data from the FuelCheckTAS app, Tasmanian customers are paying 12 per cent more for unleaded than they were at the start of 2023, while diesel has rocketed 10 cents a litre in just a month.

RACT is urging Tasmanians to shop around before filling up at the bowser. Picture: NCA NewsWire / Flavio Brancaleone

In January the average price for U91 fuel in Tasmanian was 185.4 cents per litre, which has risen to an average of 207.9 cents per litre by September.

Meanwhile, diesel has risen from an average price of 210.2 cents per litre in early August to an average of 220.1 cents per litre this month.

RACT research and policy officer Khaled Damag said the recent increases in fuel prices were mainly attributable to cuts in the global market supply, which had resulted in higher demand.

But another factor was the decrease in value of the Australian dollar, which made it more expensive to buy oil.

“There are a range of factors that contribute to petrol prices, which makes it difficult to predict, however, we expect prices will remain high while the Australian Dollar remains weak,” Mr Damag said.

“Another factor contributing to the increase in prices is the recent increase in the Federal Government’s fuel excise rate from 46 cents per litre to 48 cents per litre which took place on 1 August 2023.”

Mr Damag said one reason diesel has been more expensive than unleaded recently was due to increased demand from industries including agriculture, mining, and heavy goods transportation.

Additionally, smaller volumes of diesel were sold from service station bowsers compared to petrol.

“The prices are set by market demand and supply,” Mr Damag said.

“Our message to Tasmanian motorists is to shop around when choosing where to fill up. The RACT Fuel Saver app is available to all Tasmanians and will help you find the best deals near you.”

Bennett’s Petroleum chief executive officer, Troy Bennett, agreed with the RACT that increased demand and a weaker exchange rate was impacting Tasmanian fuel prices, but said that other Australian state had also been affected.

Mr Bennett, whose company includes a wholesaling component as well as retail outlets including the Mood Food stores, said his company was no different to end consumers when it came to global forces.

“OPEC reducing production, and China and aviation industries around the world increasing their consumption, is having an impact,” Mr Bennett said.

“But there’s great diversity in the Tasmanian market now, which is great for consumers.

“Consumers can use driveway service sites with a convenience offer or food offer, or use unmanned locations to fill.

“It’s horses for courses, which is great for Tasmanians.

“We are dictated to by international markets. But we do the best we can for our customers.”

At the Lewisham Service Centre near Sorell, where the price of U91 on Wednesday was 194.9 cents per litre and diesel 207.9 cents per litre, proprietor Maz Elali prides himself on offering his customers the lowest fuel prices in the region.

But Mr Elali admitted that his family-owned business could afford to make smaller margins on a litre of fuel because it did not have the overheads of larger operations.

Mr said that while most of his clients were locals, he did get people in from central Hobart and even Orford, as well as a steady supply of farmers looking to fill up.

“I have my regular customers, and I’m going OK,” Mr Elali said.

“We do great customer service anyway.

“The customers are happy, I’m happy, we are just a small family business. It’s just me, my wife, and our son.”

Average price per litre of U91 in Tasmania in 2023

Jan 185.4

Feb 188.6

Mar 190.8

Apr 194.4

May 188.6

Jun 186.7

Jul 188.2

Aug 203.7

Sep 207.9

Source: www.fuelcheck.tas.gov.au/app