The RACQ has warned that diesel fuel could cost more and may become scarce as tankers are taken off the road.
The RACQ has warned that diesel fuel could cost more and may become scarce as tankers are taken off the road. Ingram Publishing

Diesel to be harder to get, price up

MOTORISTS in Warwick are being warned of potential rises in the price of diesel due to increased demand and possible shortages.

The RACQ has the average price of diesel in Warwick at 158.7 cents per litre, in stark contrast with Queensland's highest average in Cloncurry of 176.0 cents per litre and the lowest average in Atherton of 152.9 cents per litre.

Ross Fraser from Frasers Livestock Transport says that the price of diesel has an enormous effect on his business.

"The price of diesel accounts for 30 per cent of our total costs." Mr Fraser said.

Mr Fraser says that diesel prices peaked significantly in recent months and are gradually steadying.

"The volatility in price is nothing new, prices are generally up and down." Mr Fraser said.

Prices in North Queensland are a concern for trucking companies according to Mr Fraser, with RACQ data showing diesel in some areas more than 10 cents per litre dearer than in Warwick.

Statistics from the RACQ also show that the average price for diesel in Warwick in September was 158.7 cents per litre, a rise of 2.2 cents per litre from August's average.

The Australian Institute of Petroleum says that the

approaching winter in the Northern Hemisphere will heighten demand for diesel and drive up prices further.

This comes as oil companies BP and Shell confirm that there is the potential for shortages in the coming weeks as one of the country's major fuel tanking companies pulls its tankers off the road for safety inspections.

Cootes Transport has pulled 36 tankers off the road for major defects identified following an incident in Sydney last week in which a fuel tanker rolled and burst into flames-killing two men.

Diesel prices in Warwick yesterday were steady with diesel selling for 158.9 cents per litre at both the Shell and Woolworths Caltex service stations and 157.9 cents per litre at the BP and Matilda stations.


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