• Fuel prices in Tasmania are higher on average than all other states and territories and big oil companies refuse to tell us why, despite owning 10 per cent of the market.
  • Tasmania is a very decentralised population which has poor public transport and infrastructure, meaning people in most cases, have no choice but to rely on their own transport.
  • Regardless of competition, price comparisons with equally remote and regional areas on mainland Australia show there is the capacity for Tasmania to drop fuel prices.
  • The RACT has estimated that the “absolute maximum” it would cost to bring petrol across Bass Strait was about four or five cents per litre. So why are we paying on average 13 cents a litre more than the mainland?
  • Realistically, a true independent retailer would need roughly an eight to 12 cents per litre margin to make ends meet, however the likes of the big supermarkets and entities reportedly receive national discounts on freight costs as well as distributor and loyalty discounts.
  • A majority of the fuel in Australia comes from the Asian region, Malaysian or Singapore refineries. There are very few refineries left in Australia and there are plans to close those remaining within the next five years.


  • There are only three main players in the fuel game here in Tasmania and they include: oil company-owned sites, supermarket and multi-site operated sites and single operators (or independents).
  • There are really only three main reasons why fuel prices in Tasmania should be higher than regional mainland centres and these are: the cost of freight to Tasmania, lower volumes of litres are sold per site and the lack of competition in the market.
  • There is no transparency of transport breakdown costs for freighting fuel to Tasmania, however statistics from the ACCC claim on average, freight is typically around 1.5 to 4 cents per litre greater for regional delivery compared to city.
  • The Government isn’t helping, charging a 10 per cent, or 38 cents per litre tax on petrol that generates an estimated $16 billion per year of funding allocated to road and rail infrastructure. The majority (around $10 million) remains as consolidated revenue.
  • An ACCC enquiry into Darwin fuel pricing has had an immediate affect. They were consistently 10 to 12 cents per litre more expensive than Tasmania, but as of today, are now less with an average of 132.9 cents per litre – this was a demonstration of price grabbing at its most formidable.