We have passed a motion for the State Government to apply greater pressure to the Federal counterparts to take real action and adopt a nationally consistent approach to address the issue of price gouging in the fuel retail market.
Research has shown that fuel prices on the Sunshine Coast are consistently and markedly higher than other nearby cities and regions. And within this area, fuel prices in the Noosa electorate are generally in the higher range on a regular basis.
To bring everyone up to speed on ‘who does what’: the State Government does not set the price of fuel, nor can it force traders to sell fuel for less. The market currently determines the cost of fuel. The State Government’s responsibility rests with fuel price display regulation.
Other contributing factors and causes of variations in retail fuel prices
The Australian Competition and Consumer Commission (ACCC) lists the following factors as causing variations in fuel prices:
• changes in international benchmark prices
• the value of the Australian dollar relative to the US dollar
• levels of competition in different areas
• pricing decisions by wholesalers and retailers.
The RACQ Fact Sheet: Fuel prices in Queensland highlights the following factors in variations in fuel prices:
• local competition and retail margins:
The price of fuel depends on the competitiveness of the local market. In order to increase sales volumes, a retailer may lower their bowser price by reducing their retail margin. In response, the neighboring retailers are likely to reduce their price.
• price cycles:
In a graph supplied by the RACQ Fuel Report Jan 2018, the average ULP price(cpl) showed the Sunshine Coast as the second most expensive in South East QLD metropolitan.
The RACQ Monthly Fuel Price Report – January 2018 provides the comparison table of prices in South East Queensland metropolitan centres. The graph can be found here.
Source: RACQ Monthly Fuel Price Report – January 2018, SEQ metropolitan centres, 5 February 2018, page 5.
In the comparison table for one day (March 6 2018) provided by RACQ Fair Fuel Prices for individual outlets in the Sunshine Coast, Noosa electorate outlets were the highest alongside Nambour and other retailers in Maroochydore etc. The cheapest were outlets at Kybong, Gympie, Mooloolah Valley and Curra.
Queensland Government Regulation
The Queensland Government introduced the Fair Trading (Fuel Price Board) Regulation 2017 (Qld), made under the Fair Trading Act 1989 (Qld), which came into effect on 31 January 2018. (*1)
Under the new regulation, fuel retailers:
• must show only the full price of fuel available to all motorists, instead of displaying potentially misleading or confusing prices
• coordinate price changes on fuel price boards and fuel pumps, so when prices change, motorists do not pay more than displayed on the fuel price board
• will still be able to offer and promote discount fuel price schemes, as long as only the full undiscounted price is displayed on the fuel price board. (*2)
Sources:
*1 Fair Trading (Fuel Price Board) Regulation 2017 (Qld), s 2.
*2 Fair Trading (Fuel Price Board) Regulation 2017 (Qld), ss 4-6; M Bailey (Minister for Main Roads, Road Safety and Ports and minister for Energy, Biofuels and Water Supply), Fuel price board reforms to protect motorists and end real price confusion, 26 February 2017.