Fuel price gap causing concern
COST COMPARISON
Douglas Shire residents are asking why they are paying up to 20c more per litre for unleaded fuel than their counterparts in Cairns.
The average price for unleaded in Port Douglas and Mossman is $1.88c per litre compared to around $1.67 per litre in Cairns at the cheapest outlets and a ‘fair fuel price’ of around $1.78 per litre (figures correct at time of submission).
A Mossman service station worker said customers were feeling the pinch.
‘People aren’t happy,’ she said.
‘Everything’s gone up, we’ve had to put up the prices of snacks and drinks just to keep up, but we try and keep our petrol prices stable to just give people a go.’
The Australian Institute of Petroleum said a range of factors determine the price of fuel including the cost of the refined product, the value of the Australian dollar, transport costs (fuel typically arrives in Australia by ship and is transported by road to fuel outlets), wholesaler and retailer overheads, federal excise tax (around 50c per litre), and GST.
According to the Australian Consumer and Competition Commission (ACCC), ‘petrol prices within Australia tend to be higher the further the petrol must travel to get to the pump.’
However, an independent retailer said the region’s pump prices were a result of market concentration and customers preferencing convenience over cost.
‘The major outlets should be able to charge less because they have greater market share, but they don’t. They also charge more for drinks and snacks than we do. They get away with it because people focus on convenience which means they go to whatever servo is on the way home and overlook the high prices.’
‘The best way to get value for money is to support the independents. The more independent retailers in the market, the greater the choice for consumers, the greater the competition, and the more pressure downward pressure on prices.’
The small business owner recommended consumers get informed and shop around.
‘Download a fuel app which will let you know what your local outlets are charging so you can make an informed choice and vote with your feet.
‘It’s also great for business - we’re listed on an app, and people drop into see us from a long way away because we keep our prices low.’
Newsport reached out to a range of major fuel outlets and suppliers for comment however they did not respond by deadline.
Support public interest journalism
Help us to continue covering local stories that matter. Please consider supporting below.