RACT says Tasmanian motorists paying too much for fuel

Global oil prices have been falling since December, and the RACT says it’s time Tasmanian motorists saw benefits at the pump.

THE state’s peak motoring body says Tasmanian motorists are collectively paying hundreds of thousands of dollars extra each day for fuel than they should be, as pressure mounts on retailers to pass on savings at the bowser.

Global oil prices have been falling since December when the coronavirus outbreak started, and the RACT says it’s time the state saw benefits at the pump.

PETROL PRICE FALL TOO SLOW, SAYS RACT

In some parts of the country, including Adelaide and Melbourne, petrol is being sold for less than $1 per litre.

Those bargains are not being enjoyed by Tasmanians, with most retailers charging from $1.40 to $1.55.

An industry source says the retail price in the state should be closer to $1.30 per litre, and fall further in the coming week.

RACT group chief executive Mark Mugnaioni said while there had been a significant decrease in the wholesale price of fuel, there had been little movement in retail prices.

Mark Mugnaioni. Picture: SUPPLIED

“Right now we are seeing Tasmanian motorists paying about $350,000 a day extra for fuel than they should be,’’ he said. “That is more than $2 million a week extra that Tasmanian families are having to find at the bowser that they should not have to.

“It is unacceptable and retailers need to step up and do the right thing and pass on savings to motorists. Tasmanian retail fuel prices are far too high when compared to other parts of Australia, an issue which is made worse when you consider the decreasing wholesale price.”

Mr Mugnaioni said the State Government should introduce legislation for compulsory real-time fuel price reporting, saying similar schemes had been successfully introduced in Queensland and NSW, and had saved motorists money at the bowser.

“The RACT encourages motorists to shop around and use the power of their dollar to send clear signals to petrol retailers,’’ he said.

“While we are seeing fuel retailers in some locations dropping their price, we are not seeing prices come down anywhere near enough across the state.”

Federal Energy Minister Angus Taylor has also urged petrol stations to pass on savings to customers.

Federal Energy Minister Angus Taylor. Picture: AAP/MICK TSIKAS

“It’s crucial that we call out those petrol stations that are not doing the right thing and we don’t use them,’’ he said.

“$1.10 is a good benchmark — customers should be looking for that.”

Tasmanian Small Business Council chief executive Robert Mallett encouraged motorists to support smaller operators who he said were selling petrol at cheaper prices.

Mr Mallett said an example he saw on Sunday was the Sandfly General Store selling fuel at $1.29 per litre.

On a visit to Hobart earlier this month, the head of Australia’s consumer watchdog said he thought petrol prices in Tasmania should drop by 25 cents a litre.

Australian Competition and Consumer Commission chair Rod Sims said the lag time between an international oil price drop and the flow-on impact at the bowser was usually two to three weeks.