With many grey nomads now travelling huge distances as they head north, they inevitably become ever more conscious of the cost of fuel and the amount of money they are spending at the bowser.
It is one of the most volatile and unpredictable elements of the on-the-road budget, one that you can never really be sure about from one week to the next, and even one day to the next. Aside from all of the world events that can suddenly make oil prices fluctuate wildly, there are the local elements that can also see prices vary significantly.
At the centre of this, of course, is competition and transport costs. They may not like it, but most grey nomads accept that they are going to pay more for fuel at a dry and dusty remote Outback roadhouse than at a gleaming new service station in Sydney, Perth or wherever.
But sometimes there is more to it than that.
The Australian Competition and Consumer Commission (ACCC) has just handed down a report into Cairns fuel prices, which reveals that profits at service stations in the far north Queensland city are a staggering 38% higher than the national average.
The report also showed, over the past five years, Cairns motorists paid on average 11 cents per litre more for unleaded petrol than those in major cities around Australia.
“The ACCC’s Cairns petrol market report confirms what motorists have suspected for a long time: they are paying too much for fuel and contributing to very high profits for retailers in the area,” ACCC Chairman Rod Sims said. “Competition in the Cairns fuel market is weak and unfortunately it is consumers who are paying for this at the bowser.”
The ACCC said that if retailers were more competitive, it would expect fuel prices to drop by about four to five cents per litre. The nearby towns of Innisfail and Mareeba, for example, have more competitive markets with on average lower prices than Cairns, despite having a fraction of their population.
The ACCC would like to see real-time information on fuel prices to put pressure on prices. It says existing services such as the MotorMouth website and GasBuddy app are not always comprehensive or timely in regional markets.
The latest report is the fourth market study on a specific regional market that the ACCC has conducted. The regulator says it will now review lessons learned in this study and others conducted in Darwin, Launceston and Armidale, and assess how they may apply in other regional locations.
· Have you noticed a massive variation in fuel prices between towns and states? How much did you pay per litre the last time you filled up and where were you? Comment below.
I sometimes wonder at the role of the ACCC – According to many websites they do not enforce the Australian Consumer Law when it comes to Caravan Manufacturers/Dealers not honouring warranties and repair or replace conditions on expensive Motor Vehicles including Caravans. Did the ACCC inspectors enjoy their little holiday to Cairns, so they could compile a report about how consumers are being duded?
Collusion in the Fuel Industry has been rampant for years – What has ACCC done about it? Write reports that feature on TV News Bulletins then ………………. , that’s right; Nothing.
It’s about time the ACCC started earning it’s massive grants and it’s role enforced.
$1.59.9c a ltr on Magnetic island at moment. $1.23c in Townsville. Does it cost 16c a ltr to barge from Townsville? Someone is making a LOT of money.
mate i think that is more than fair they would not be holding large amounts of stock lets say 10,000ltrs a delivery so you have barge coasts over and back truck time and wages for the driver over and back.so that’s an extra $1,600 per delivery i’d be happy to pay that much on the island.:D
CheersDoddsy
The price is a concern and the cheaper the better.
I have two grips with fuel.
1) Why is the price diff 10/15c a lt from suburb to suberb it should be the same all over the metro area.
2) How come fuel/oil company’s can price at point of a cent ($101.9 or $125.5) give me a break and make it $1.02 or $1.25
You get my meaning.
Regards Ge from Perth.
Just drove Sunshine Coast to Whitsundays. Cheap fuel around GYMPIE area, CHILDERS, AIRLIE BEACH. Expensive in ROCKHAMPTON!
I use the ‘Fuel Map’ app which is free from the people that make WikiCamps. It is only as good as the frequency that the users up-date the information. At worst at least you can find where the nearest servo is when you are in an unfamiliar town or city.
I am from Albury/Wodonga on the NSW and Vic border and at the moment Diesel varies from $124.9 to $147.3 with many priced in between.
It is hard to beleive that anyone would fill up at the dearest price when they are only about 10 km apart.
Clarence Fishermans Co op River st Maclean NSW $1.25 cpl
5 cent a liter cheaper than anywhere on the Pacific Hwy north ot Taree
factors that normally influence fuel prices have been stable for some time but fuel prices fluctuate wildly, servos in my area recently went from $1.115 to $1.399 and all brands at the same time, I am sure there is no collusion by the fuel companies, I guess I must be gullible to believe that.
come on Government wake up the people you represent are being abused by fuel companies, especially Coles and Woolworths who control the industry.