MoneyPetrol prices in Tasmania explained and why drivers hold the key to cheaper fuel

05:55  11 january  2019
05:55  11 january  2019 Source:   msn.com

Tasmania's house prices are still on the rise, but is the property market heading for a slowdown?

Tasmania's house prices are still on the rise, but is the property market heading for a slowdown? Hobart's property market continues to go from strength to strength and buck the national trend. What's driving the growth and are there any signs the boom is set to slow?

Compare fuel prices and search petrol station locations near you or by postcode/suburb using the Petrol Spy website or mobile app. Check FuelCheck prices for NSW and FuelWatch prices in Western Australia.

The lower cost is a key factor driving the rapid rise in electric car sales now underway, say the Pure electric cars have much lower fuel costs – electricity is cheaper than petrol or diesel – and It's already comparable in price to other sources, and it's an ideal match for electric cars which can

Petrol prices in Tasmania explained and why drivers hold the key to cheaper fuel© Provided by ABC Business

Why is petrol so much more expensive in Tasmania than it is on the mainland?

The answer is complicated and depends on various factors.

To breakdown the question, ABC Hobart hit the road to compare prices at bowsers and spoke to industry experts.

How inflated are fuel prices across Tasmania?

Tasmania has faced the most unfair fuel prices in the country for some time.

Harvey Lennon, the RACT chief executive, described the margin between capital cities as "nonsensical and illogical".

He estimated that in the last two months, 80 per cent of fuel sold in the state was at an inflated price and that Tasmanians collectively pay $2 million more each month than they should be paying.

Tasmania's house prices are still on the rise, but is the property market heading for a slowdown?

Tasmania's house prices are still on the rise, but is the property market heading for a slowdown? Hobart's housing market continues to buck the national trend, once again being named Australia's best-performing capital city for house price growth. While national prices experienced their steepest drop since the global financial crisis, the nation's southernmost capital city continued full steam ahead. So what makes Hobart's housing market so different to the rest of the country, and will the boom come to an end anytime soon? What's driving prices up? The latest report from property analyst CoreLogic report, released yesterday, showed that in the year to December 2018, dwelling prices jumped 8.

Cheap petrol prices . Things to look out for. The price of petrol impacts all drivers , and while the factors that Here’s a handy guide that explains the different types of fuels you’ll find in Australia. With petrol prices following a price cycle of up to 3 weeks, the key to getting in at the right time is to

PETROL pump prices hit a three and a half year high last week, and experts are predicting the cost of filling up to rise even further in a fortnight. If you are confused about why your petrol bill keeps going up and want to keep it down, you can cut down your petrol costs with a couple of these quick fixes

"You cannot explain logically the prices having stayed in the high $1.50s for as long as they have," he said.

Princes Motorway closed after 36,000-litre fuel tanker catches fire

Princes Motorway closed after 36,000-litre fuel tanker catches fire The Princes Motorway was closed in both directions at Figtree just after 8.30am on Friday.

Why we are the best Fuel Prices App for Android and iOS. Saving on fuel can be incredibly important both for businesses and privates. Our company lets the truck drivers decide which fuel to use. Using this app I was able to save the company some money every month, so I got more bonuses!

Fuel Card Pricing only applies where referenced in a supply agreement, otherwise pricing will be based on the pump price at the time and location of The Australian Government applies an excise for every litre of petrol and diesel sold. The excise has been 38.143 cents per litre for a number of years.

"The reality is there are a lot of retailers charging way too much and Tasmanian motorists are footing the bill."

Mr Lennon said his organisation fields daily phone calls from motorists complaining about the disparity in prices.

He said the wholesale price of fuel in Tasmania is $1.20 and "if you're paying above $1.40 per litre, you're paying too much".

"If you're paying above $1.50 per litre, you're paying way too much."

Motorists on average have been paying "at least 20 cents per litre too much" in Tasmania, Mr Lennon said.

What makes Tasmania different from the mainland?

There are several complex factors that impact the cost of fuel in Tasmania.

Malcolm Little, the general manager of the Tasmanian Automobile Chamber of Commerce (TACC), said the key things Tasmania was missing to make prices more affordable was competition and the price cycle that cities such as Melbourne and Sydney enjoy.

Is this the cheapest petrol station in Australia? Servo slashes prices to less than a $1 a litre - and they're the first to do so in TWO years

Is this the cheapest petrol station in Australia? Servo slashes prices to less than a $1 a litre - and they're the first to do so in TWO years Metro Petroleum at Lurnea (left and right), in Sydney's south-west, is selling petrol for less than $1 a litre. 

Put the wrong fuel in? Diesel in a petrol car or vice versa – what to do about a car fuel mishap. Don’t turn on the ignition or start the car – call us straight away on 0800 Remove the keys from the ignition: do not attempt to start the car. Doing so can cause permanent damage and require costly repair work.

key - to - driving -lower- petrol - prices - in -launceston. RACT is happy to support Tasmanian Broadcasters in their campaign to bring cheaper fuel prices to Tasmania . Want to compare petrol and gas prices in Tasmania ? Download the free GasBuddy app.

"Service stations in Sydney and Melbourne have higher volume and much more of an economy of scale," he said.

"Whereas service stations in Tasmania are smaller, yet more numerous and often family owned, meaning they do not have the same economy of scale and have to absorb more costs."

Mr Little said the international price of crude oil, its reprocessing in Asia and transport to Australia and Tasmania were some of the other components that swell prices at the bowser.

The shopper docket discount scheme was also adding "distortion to the problem, creating irrational consumer behaviour", he said.

Mr Little said a lack of independent service stations, which are disappearing across the state, also adds to a concentrated market in Tasmania.

To add to the mix, Hobart, which is considered a regional city, does not have a capital city price cycle.

Fuel is an unregulated commodity that relies on petroleum and oil companies to set price strategies that allow for natural peaks and troughs in prices.

Why do prices vary around the state?

Prices at the pump vary widely and dramatically across the state.

It's not you, it's me… is it time for Tasmania to break up with the rest of Australia?

It's not you, it's me… is it time for Tasmania to break up with the rest of Australia? There's a lot to be said for Tasmania: great food, great wines, great climate, great environment, renewable energies. 

Keeping the price of a barrel of crude at or less will devastate the profitability of fossil fuel extraction – as the shelving of three tar sands projects demonstrates.

It's possible to drive down the cost of fuel if you buy in the right place, in the right way. As well as helping you find the cheapest petrol and diesel prices , this complete guide by Money Saving Expert explains how to improve your car's fuel efficiency and includes speedy tips and tricks on other ways

Generally, regional areas enjoy cheaper prices than urban centres in Tasmania — which indicates urban retailers are have high margins in place.

Mr Lennon said the discrepancy in prices across the state was "inexplicable".

"You cannot justify the price in metropolitan areas being substantially higher than in regional outlets, it just doesn't make sense," he said.

As of today, the average cost of unleaded fuel per litre across Tasmania was $1.45. The prices were as follows in Tasmania's main urban centres:

  • Launceston 1.45
  • Burnie 1.39
  • Devonport 1.45
  • Hobart 1.53

The cheapest unleaded fuel, per litre, was found in these regional centres:

  • Dunalley 1.32
  • Lauderdale 1.34
  • Triabunna 1.32

The ACCC explained that fuel prices are generally higher in regional Australian areas due to:

  • Lower population and demand resulting in fewer outlets, leading to less competition;
  • Higher costs for transport and storage of fuel;
  • Less demand for convenience sales like drinks, food and newspapers that can enable retailers to add to overall profits and keep fuel prices lower;
  • The location of outlets; whether or not they are on a highway and likely to get a high number of customers.

What can motorists do?

Both the RACT and the TACC said where motorists choose to fill up is the best lever of change.

"We're calling on motorists to support retailers who are doing the right thing," Mr Lennon said.

While the RACT is planning to talk with the Australian Competition and Consumer Commission (ACCC) and the relevant state minister, fuel prices can ultimately be driven by consumers, Mr Lennon said.

"Please have a look at the price you're paying, if you're paying more than 1.40 pre-discount you're paying too much."

"Support the retailers doing the right thing and charging a fair price."

Mr Lennon said that would increase competition and encourage other retailers to drop their prices in order to maintain their market share.

Mr Little encouraged motorists to download the RACT fuel app that compares current fuel prices across Tasmania.

And while motorists have a right to be angry they are being charged too much for fuel, the ACCC has ruled out investigating Tasmania's market for anti-competitive behaviour.

Sydney set for more property falls, but some NSW towns and suburbs are fighting back.
Sydney's property downturn will continue into next year, with the latest report into the market predicting a 5 per cent fall in prices in the first half of the year — however some suburbs and regions seeing price increases.

—   Share news in the SOC. Networks

Topical videos:

This is interesting!