Fuel prices soar as subsidy goes
UNLEADED petrol increased by up to seven cents per litre at Tweed bowsers yesterday morning in what could be the initial effects of the New South Wales border fuel subsidy's scrapping.
Long line-ups at Minjungbal Drive service stations on Tuesday night showed the public was expecting a price hike yesterday morning, and in most cases it happened.
Back in 2000, the Queensland Government began subsidising diesel fuel by 8.354 cents a litre, and in 2006 it was expanded to other types of fuel.
With the Tweed's proximity to Queensland, the NSW Government brought in a border fuel subsidy to match, which decreased in increments south to Lismore. But both governments scrapped their schemes as of midnight, July 1.
The Tweed Daily News recorded the fuel prices between 11am and 11.30am on Tuesday and yesterday to examine whether there was a difference.
It was found that of seven petrol stations, four increased their price for unleaded, two stayed the same and one actually dropped.
Kennedy Drive BP increased by five cents, Quix had increased by 6.3 cents, Pacific Highway BP had gone up by four cents and Chinderah Bay Drive BP increased by seven cent.
The new Shell on Minjungbal Drive and Woolworths remained the same from Tuesday to Wednesday, although the Shell had raised its price to 123.9 cents by 2.30pm.
Surprisingly, despite the sub- sidy being scrapped and being on an upward curve on the price cycle, Wharf Street Shell's price reduced by a cent.
Kurt Otto, of the northern Gold Coast, filled up at Minjungbal Drive Shell yesterday and said he chose to fill up there because it was cheaper than the Gold Coast.
He said the price didn't seem much different than the last time he filled up at the Tweed.
NSW will save $44 million a year by scrapping the scheme, but it is feared there could be flow-on effects as trucking companies pass on increased costs to consumers.
Tyalgum mother of five Michelle Baker also bought fuel at the Coles Express service station.
She said she did a lot of travel and her cars chewed up the petrol.
“This will make a huge differ- ence for our budget,” Mrs Baker said.
A Tweed fuel industry insider told the Tweed Daily News many factors influenced the price of fuel, and most local service stations would be told by oil companies how to set their price.
He said an invoice received at a service station in the minutes after midnight Tuesday showed an immediate increase in cost of 9.2 cents a litre.
• Tuesday, between 11am and 11.30am:
Kennedy Drive BP: 118.9
Wharf Street Shell: e10 116.9, Minjungbal Drive Shell: e10 116.9, unleaded 119.9
Pacific Highway BP, Chinderah: e10 117.9
BP Chinderah Bay Drive: 119.9
• Yesterday, between 11am and 11.30am
BP Kennedy Drive: 124.9
Wharf Street Shell: e10 115.9
Minjungbal Drive Shell: 116.9, unleaded 119.9
Pacific Highway BP, Chinderah: e10 123.9
BP, Chinderah Bay Drive: 126.9