NSW petrol prices fall but Queensland resists further relief
NSW Premier Chris Minns has urged travelers not to cancel Easter holiday plans over fuel concerns, saying supply should be available as price cuts start to flow into the bowser.
The average price of E10 gasoline fell to an average of 229.8 cents per liter on Wednesday afternoon after service stations began reflecting the federal government’s 26-cent cut in the fuel tax. The drop in average prices was about 17 cents as some retailers took longer to pass the savings on to consumers.
This has led to some major discrepancies, such as a BP in Lane Cove charging 257.9 cents per liter on Wednesday and another station up the road charging only 226.7 cents per liter.
Fewer service stations were empty across NSW on Wednesday, which Minns said may reflect a momentary easing in demand as consumers wait for the fuel excise tax cut to kick in before it expires.
“So I’m not going to put myself forward, but it came at a good time,” he said.
“It tells me fuel will be available and if you can afford to go on holiday you shouldn’t cancel your Easter long weekend plans.”
The number of service stations reporting that they were out of diesel fuel increased from 105 on March 22 to 247 on Tuesday, an increase of 135 percent. Those reporting depletion of all fuel types doubled from 37 to 75 as of March 30, before declining significantly on Wednesday.
Queensland stands in the way of further bowser relief after the state failed to agree to a NSW proposal to transfer extra GST from higher fuel prices. Minns said the proposal was a “clear, clear intervention” and the simplest way to help the community.
Australia’s ski industry is holding its breath to see how high fuel prices and a cost-of-living crisis made worse by the war in Iran will affect winter operations.
I’m already facing Decrease in snow mass due to climate changeThe problems of resorts in the coming season are multifaceted.
Assistant professor of climate change at Monash University and Save Our Winters ambassador, Dr. Andrew Watkins said: “This will make all our trips to snowfields more expensive.”
Not only do many skiers drive diesel, he said, but much of the equipment needed to run a ski resort — snowplows, on-snow vehicles and some industrial power generators — runs on Australian Alpine diesel, a special blend for cold weather with kerosene or another anti-coagulant added.
“It highlights the security issue of relying on fossil fuels in a global market. It’s inherently risky and has national security issues,” Watkins said.
“International markets determine the cost of going profitable.”
Adding to the resorts’ woes are pre-sold season tickets: Vail Resorts, the American company that owns Perisher, Falls Creek and Hotham, sold Epic Passes for $1,051 at the end of last year; Before the war between Iran, America and Israel closed the Strait of Hormuz, leading to a significant increase in the cost of fuel. It’s currently priced at $1235, while Thredbo’s season pass retails for $1899.
A spokesperson for Vail Resorts Australia said fuel supply challenges varied by resort but they had not seen a “significant impact” on pre-season supply.
“Like all Alpine operators, we are planning for a wide range of scenarios to ensure we can continue to operate safely and sustainably even if costs or supply conditions change,” he said.
Monaro MP Steve Whan, a keen skier, said: “They have set their prices; pre-season prices are usually set well in advance of the calendar year. There will be a cost increase on diesel which will definitely reduce cost margins this year.”
The next 5 to 10 weeks will be crucial for the ski season, which traditionally begins on the long weekend in June.
Ethan Thomas, manager of Paul Reader Snow Sports on Sydney’s York Street, said the store had not experienced any impact from the fuel crisis so far but they expected the cost of freight to rise “in the very near future”, which would ultimately be felt by customers.
While the 70-year-old store’s busiest period domestically is between June and September, Thomas said if the war continues into the winter, this will be felt eventually.
Whan said the main factor that determines whether people will ski is the quality of the snow.
“The price of fuel won’t have a huge economic impact on the success of the ski season. It will impact day-trip skiers who come to sled, but it’s not a huge economic contribution,” he said.
“I’m not hearing of bookings being any different at this stage.”
Thredbo declined to comment. Charlotte’s Pass has been contacted for comment.
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Max Maddison is the state political correspondent for The Sydney Morning Herald.
