Fill up now: SEQ bowser prices on the rise

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Fuel companies across South East Queensland are pumping up their unleaded prices, bolstering retail margins in the midst of ongoing global conflict and concerning inflation.

person filling up with unleaded
Over the past week, 6% of stations have jumped to just shy of $2.30 per litre for regular unleaded, with more following by the hour.
 
RACQ’s Principal Economic and Affordability Specialist Dr Ian Jeffreys said fuel companies could be attempting to reinstate the unleaded price cycle.
 
“SEQ’s fuel price cycle collapsed in March when the Middle East conflict began and hasn’t returned. Since then, drivers have been experiencing a fairer, flatter market,” Dr Jeffreys said.
 
“We haven’t been seeing the usual extreme overnight price hikes, apart from a few failed attempts to reinstate the cycle.
 
“We’re concerned companies could be successful this time, increasing their prices by around 30 cents per litre (cpl) overnight."
 
RACQ urged motorists to fill up now and aim to buy regular unleaded for around $2 per litre.
 
“Around 20% of servos are still charging a fair price of $2 per litre or less for regular unleaded, so drivers should avoid topping up with more expensive fuel,” Dr Jeffreys said.
 
“The difference between the most expensive and fairer priced stations is around 30cpl. If you’re filling an average 50 litre tank, that’s a $15 difference.”
 
Dr Jeffreys said ongoing conflict in the Middle East was also not helping, with oil prices surging to $96.3US per barrel.
 
“The rise in oil prices might result in a moderate increase to bowser prices, but it doesn’t justify a hike as big as we’re seeing,” he said.
 
“We’re encouraging drivers to use fuel price monitoring apps like RACQ’s Fuel and Deals to find the cheapest sites near them and fill up sooner rather than later.”
 
Since 2010, fuel retailers have been maintaining an increasingly long price cycle, which in recent years has typically lasted six weeks and seen overnight price hikes of up to 60cpl.
 
“If fuel companies succeed in reinstating the cycle, Queensland must look to introduce market regulation quickly to shorten and flatten the cycle and make it fairer for motorists," Dr Jeffreys said.

RACQ will continue to model potential fuel price cycle regulation methods and consult with decision makers on the issue.

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