Petrol Prices Surge in South East Queensland: Drivers Urged to Fuel Up
Petrol prices in South East Queensland have surged dramatically, with some service stations reporting increases of nearly 60 cents per litre. Motorists are being urged to fill their tanks sooner rather than later, as the ongoing tensions in the Middle East, particularly the Israel-Iran conflict, contribute to price volatility.
The Royal Automobile Club of Queensland (RACQ) indicates that prices in Brisbane and the Gold Coast have risen from a low of 160 cents per litre to as high as 219.9 cents per litre — the most significant increase seen in nearly a year. RACQ’s head of public policy, Dr Michael Kane, expressed concern over the unjustified nature of this escalation. He stated that even considering market fluctuations, prices should not exceed 207 to 209 cents per litre.
Kane highlighted the disproportionate blame being placed on international factors like geopolitical tensions and fluctuating global oil prices, arguing that these circumstances have not resulted in significant changes to wholesale fuel prices. He revealed that some retailers are recording profit margins as high as 52 cents per litre, questioning the fairness of these prices for consumers.
The Australian Competition and Consumer Commission (ACCC) notes that retail fuel prices in Australia are affected by global market trends, including crude oil prices and the strength of the Australian dollar compared to the US dollar. However, local factors, such as competition between service stations, can also play a role in determining pricing.
While major cities like Sydney, Melbourne, Adelaide, and Perth are reportedly experiencing decreases in fuel prices, Brisbane seems to be on an upward trajectory. Treasurer Jim Chalmers has taken note of the situation, writing to the ACCC to monitor petrol stations for potential price gouging during this volatile period. Chalmers pointed out that global oil prices have risen sharply, climbing over 25% since early June but have started to ease following recent ceasefire developments.
Chalmers emphasised the need for service stations to act ethically and fairly, encouraging them to consider the impact of their pricing decisions on Australian motorists. He stated, "We don’t want to see service stations do the wrong thing by Australian motorists,” calling for the market to operate effectively amidst ongoing global price fluctuations.
Following the announcement of a ceasefire between Israel and Iran, Brent crude prices have seen a decrease, falling by 5% to around $67.90 per barrel. According to NRMA spokesperson Peter Khoury, while price increases are expected, the anticipated rise may not be as steep as initially feared, suggesting an average increase of about 8 cents per litre.
Despite the overall increase in prices, the RACQ has confirmed that lower prices persist at approximately 50% of service stations in Brisbane and 60% on the Gold Coast. The RACQ advises motorists to take advantage of these cheaper rates, suggesting they should aim to fill up at prices of 170 cents per litre or less. Kane urged drivers to refuel before the weekend, highlighting the importance of supporting service stations that have not yet raised their prices significantly.
In summary, the fuel price situation in South East Queensland is marked by significant increases largely deemed unjustified by experts, while global and local market dynamics continue to play a crucial role in shaping petrol costs for consumers. Motorists are encouraged to be proactive in managing their fuel purchases to avoid potential spikes in the coming weeks.
