Your fuel and efficiency questions, answered
Our answers to your most common questions about fuel prices, fuel supply, and what Tasmanians can do.
We know rising fuel prices are putting real pressure on Tasmanians right now.
We've been hearing from many of our members about the impact, and we want to help. Below, we've answered some of the questions we're receiving most often.
What can I do to get more kilometres out of the fuel I buy?
We can improve fuel economy by around 15 per cent by changing how we drive:
Drive smoothly
The harsher you brake and accelerate, the more fuel you use. Driving smoothly has the largest single impact on fuel consumption.
Watch your speed
Stick to or slightly under the speed limit on highways and use cruise control. Driving slightly under the speed limit can help conserve fuel as there is less wind resistance
Correct tyre pressure
Check your tyres are inflated to the recommended pressure (find this info on the little sticker inside the driver’s door, under the fuel cap, in the glovebox or owner's manual.)
Extra tips:
Don't sit and leave your engine running.
Service your vehicle to its recommended schedule: an engine that’s running efficiently uses less fuel.
Track your usage. Reset your trip meter after filling up and monitor how changes in driving habits influence mileage.
Buy only the fuel you need, when you need it. Panic buying or stockpiling fuel just makes the problem worse for everyone, particularly in regional areas where resupply can take longer due to distance. Stockpiling fuel at home is dangerous.
How much is the temporary reduction in fuel excise?
The Federal Government has announced that the fuel excise will be halved for a three-month period starting on April 1st.
This measure will save motorists 23.6 cents per litre on the cost of petrol and diesel - about a $19 reduction for a 65l tank of fuel.
RACT supports the reduction as an immediate cost of living measure.
Any ongoing increases in fuel prices will continue to place pressure on budgets. RACT advocates for targeted support to individuals and industry sectors that are being hardest hit by rising fuel costs.
The fuel excise is a flat sales tax that is collected for the upgrading and maintenance of roads.
While RACT supports this temporary reduction to provide relief to households and business – we don’t want to see it come at the expense of funding into Tasmanian roads and infrastructure.
The Government also announced the removal of the heavy vehicle road user charge for the same period.
Will we see an immediate price change at the bowser?
The last time the fuel excise was reduced in 2022, it took a few days to flow through to consumers.
RACT expects fuel companies to pass through these savings in a timely manner. Shop around for the best price using the RACT Fuel Saver app.
I am hearing that some of the new fuel supply is dirty fuel. Is it safe to use?
On March 12 the Federal Government announced that it would allow fuel with a higher sulphur content to be released into the Australian market. This fuel is refined in QLD and would have been exported.
This fuel has a sulphur content of 100 ppm (parts per million) and was in regular use in Australia until about six months ago when regulations to reduce sulphur content to 50ppm in Australian fuel came into effect. This fuel is also blended into the broader fuel supply.
The fuel does not have negative effects on a vehicle’s engine.
Concerns about Fuel Security
Should I buy fuel now and store it just in case?
No, panic-buying only causes additional problems that impacts the broader Tasmanian community. Stockpiling fuel or panic buying has caused some local service stations to temporarily run out of supply, especially in rural and remote areas.
If a fuel station needs to make an unscheduled urgent resupply this can take some time and can result in increased prices due to out of schedule delivery charges.
Stockpiling fuel is dangerous. If you do have fuel stored at home for mowers, make sure it is in certified containers and not stored under the same roof as your home.
Our message to our members and the community continues to be buy fuel when you need it, and please don’t stockpile petrol at home.
Are there fuel shortages in Tasmania?
The majority of fuel stations have not had disruption to their regular supply of fuel.
There have been some localised fuel shortages usually on a specific type of fuel. This is being caused by increases in demand at a particular location. It is a short-term issue while an additional fuel delivery can be arranged.
If people are seeing localised shortages, it is only a matter of time until they are resolved.
Will fuel prices continue to increase?
This is the most frequently asked question, and it is the hardest to predict.
There are many factors that impact fuel pricing. The duration and breadth of the impact of the war in the Middle East is unknown. Long-term fuel prices will depend on the situation in the Strait of Hormuz and other interruptions to global oil supply.
Iran has effectively closed the Strait to most shipping resulting in ships taking a large, costly detour. If this supply route continues to remain closed, it will drive up the cost of crude oil further and ultimately lead to increases in the price of fuel at the pump.
RACT continues to advocate about the impact the pace of fuel price increases is having on Tasmanians at the weekly State Fuel Security Meeting and other forums, including the ACCC.
Should I consider buying an Electric Vehicle?
RACT encourages Tasmanians to purchase the safest, most efficient vehicle they can afford that suits their circumstance. Over the past two years RACT has been part of a program called Real World Testing, which tests efficiency and vehicle emissions across EVs and combustion engine vehicles on typical Australian road driving conditions compared to the advertised levels.
EVs continue to evolve to improve range and charge times. With more new manufacturers entering the market it is becoming an option for more Tasmanians.
What is RACT doing?
RACT is a mutual, which means we exist to represent the interests of our members. We have been monitoring Tasmania’s fuel prices closely since the end of February and will report any issues we observe. We represent our members and community a various national forums outlining the impacts of the crisis on our regional island community. We are in regular forums and communication with government, our sister clubs, fuel suppliers, Tasmanian industry groups, to understand emerging challenges and advocate for the interests of our members.