South East Queensland motorists could have just days left to fill up at under $2 per litre, with fears retailers are trying to resume the region’s price cycle amid ongoing global instability.
Fuel retailers seemingly abandoned South East Queensland’s price cycle when conflict broke out in the Middle East and oil prices spiked, with average pump prices in March peaking at $2.59 for unleaded and $3.22 for diesel.
Since then, bowser prices have been falling as they tracked wholesale fuel and global oil prices, with the federal government’s 32-cent fuel excise cut also easing the purse pain.
Since April 26, average southeast prices for unleaded have been $1.82 while diesel has fallen to a low of $2.45.
But RACQ Principal Economic and Affordability Specialist Dr Ian Jeffreys said at least 72 sites, 13.3 per cent of the southeast total, had now hiked unleaded prices to $2.19, and that number was expected to grow in the coming days and weeks.
The price spike is despite the unleaded wholesale price sitting at $1.82 as of Thursday.
Dr Jeffreys said after months of sustained high prices, the last thing motorists needed was fuel companies reinstating and bolstering their retail margins.
“It’s too early to say whether this is a short-term spike, but historically price cycles last for around six weeks in South East Queensland.
“(Thursday’s) new high of 219.9cpl includes the temporary 32-cent fuel excise cut which is currently due to finish at the end of June.
“Without it, prices would be sitting at around 251cpl.” Late on Thursday, Rocklea, Annerley, Greenslopes and Tingalpa were noted as selling unleaded for under $1.70 per litre on the southside, while Bracken Ridge, Bald Hills and Carseldine were among the cheapest on the northside.
For diesel, Red Hill, Bracken Ridge, Nundah and Northgate were all offering prices below $2.40.
The Australasian Convenience and Petroleum Marketers Association chief executive Rowan Lee said price hikes to $2.19 could be a result of those service stations being unable to sustain discounted prices in the $1.60s and $1.70s for any longer.
“Brisbane motorists have had a really good run of prices, which have been declining since the second of April down to what has now been plateaued for the past 10 days,” he said.
“(Retailers) obviously can’t continue operating at such a low level and they’ll have to recoup their average price over the fuel price cycle to keep their businesses sustainable.”
Mr Lee said it was unclear what was to come for wholesale prices so motorists needed to vote with their wallet to keep prices down.
“If people go to reward the cheaper petrol stations, they’ll be doing higher volume, and if they’re doing higher volumes, their prices will remain subdued,” he said.
“It’ll be interesting to see how long they stay at $2.20.
RACQ says it is undertaking detailed research into the most effective models for fuel price regulation, as a long-term solution to improving competition and making prices fairer.
Extracted in full from: https://www.couriermail.com.au/news/queensland/qld-fuel-prices-fears-unleaded-set-to-rise-above-2-again/news-story/464d0007f8d740a7d71d2377e7437019
