ACCC applauds United Petroleum’s move to Cairns with cheaper fuel prices
STAFF WRITERS, The Cairns Post
July 8, 2017 2:30pm
UPDATE: MOTORISTS have rushed to a new Cairns fuel station to snap up the cheapest prices the city has seen for years.
United Petroleum opened shop at Woree yesterday and slashed the price of fuel with unleaded petrol at 109.9 cpl and diesel at 108.9 cpl.
Mt Sheridan motorist Jodie Maynard took advantage of the low price today.
She spent about $60 when she filled up her Holden Commodore with unleaded petrol.
“I am loving it,” she said.
“I didn’t even realise it was a new station.
“I just saw the price and thought, yep, I am going in there.”
The Australian Competition and Consumer Commission has welcomed the new competitor into the market after its recent investigation revealed petrol stations were making about 38 per cent higher average net profits than other sites around Australia in 2015—16.
“The entry of new retailers such as United provides a welcome relief to motorists who have been paying very high prices for several years,” ACCC chairman Rod Sims said.
“United’s entry into the Innisfail market has benefited motorists by driving prices lower, and we hope that consumers in Cairns will also benefit from lower fuel prices as a result of this increased competition.”
Mr Sims said the ACCC would continue to monitor fuel prices in its quarterly petrol reports.
“However, competition is also driven by the willingness of motorists to shop around for the best price. New price comparison apps are giving motorists the power to make a difference in their area.” .
EARLIER: UNITED Petroleum has opened shop in Cairns and slashed the price of fuel with unleaded petrol at 109.9 cpl and diesel at 108.9 cpl.
Cairns fuel prices are among the most expensive in the state.
The Cairns Post has previously reported that the city’s petrol stations were making 38 per cent more profit on fuel sales than the average across Australia.
The reason — a lack of competition.
An Australia Competition and Consumer Commission report found that since 2012-13 petrol price in Cairns have been about 11 cents per litre more than in the five largest cities in the country including Sydney, Brisbane and Melbourne.
United Petroleum has opened its first service station in Cairns at Southgate Cl in Woree.
“The Cairns people have been paying way to much for their fuel for many years. This is set to change with United’s entry into the Cairns market,” United Petroleum chief operating officer David Szymczak said.
“United understand the concerns the people of Cairns have had about petrol pricing which has resulted in the ACCC recently conducting the Cairns Regional Fuel Market Study, which was released in May.”
Mr Szymczak said this study confirmed that the entry of United into the Innisfail region structurally changed the market for the better.
“Consumers in that region can save money every day by choosing to fuel up at United,” he said.