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Call to support cheap fuel

RACT Group Chief Executive Harvey Lennon speaks to the Tasmanian media about fuel prices
Tasmanian motorists are being urged to support fuel retailers that are offering prices below $1.40 a litre, after weeks of continued high prices hitting hip pockets around the state.

Tasmanian motorists are being urged to support fuel retailers that are offering prices below $1.40 a litre, after weeks of continued high prices hitting hip pockets around the state.

With the wholesale price currently below $1.20 per litre, motorists should be buying unleaded fuel for less than $1.40 a litre. Some retailers, mostly independent operators, are selling petrol at around $1.34 per litre or less.

“Tasmanian motorists should support these retailers, which will increase competition in these areas and encourage other retailers to drop their prices in order to maintain their market share,” RACT Group Chief Executive Harvey Lennon said.

Mr Lennon said RACT had demonstrated significant support to United Petroleum under their partnership to offer members a price discount per litre of fuel purchased, but United and other major retailers needed to ensure their pricing reflected what was happening with the wholesale price.

“We have raised our concerns directly with United late last year about ensuring our members – and other motorists – are not paying too much for fuel,” he said. “More recently, we have again raised our concerns with the Australian Competition and Consumer Commission (ACCC).

“Our members have shown great loyalty to United in the almost three years of our partnership, with members making more than 4.25 million transactions and saving more than $9.6 million.

“This financial year to date alone, almost half of our members have used United stations, with an average of almost 16 transactions per user in that time period.

“Also since the partnership started in March 2016, United has opened 11 new sites in Tasmania, providing increased competition in key locations.

“We are asking United to repay this loyalty by leading the market towards more acceptable margins.

“We need United and other major retailers to do the right thing by Tasmanian motorists and charge what is a fair and reasonable price for petrol.”