A SMALL independent Tableland fuel station was yesterday selling fuel for 7c to 10c a litre less than competitors in Cairns and larger regional centres in the Far North.

The Kairi Store, 80km southwest of Cairns, dropped its price 7c to 125.9c a litre to reflect Thursday’s drop in oil prices, making it one of the cheapest places to fuel-up.

The move earned the RACQ’s praises.

In Cairns, Wharf St Caltex was selling at 125.9c a litre but most of its competitors were selling at 132.9c to 133.9c.

There was no sign of a markdown at Tully, Atherton or Mareeba with fuel selling at $1.40 a litre, 132.9-134.9c a litre and 135.9c respectively.

The Kairi Store owner David Ball said he often had the cheapest fuel because he never increased the cost of fuel simply because it was a Friday or a public holiday.

"The price of fuel dropped and we had a delivery today so we dropped our price by 7c," he said.

"We don’t change the price in busy periods or weekends to make money because that is just not right."

RACQ external relations general manager Gary Fites told The Weekend Post fuel prices were trending down but prices at the fuel pump on the whole were not reflecting the drop in oil prices.

"For whatever reason he (the Tableland retailer) is able to do it, he’s closer to the money of what we believe the retail price should be," Mr Fites said.

"$1.25 a litre seems to be a fair and reasonable price.

"It appears to allow a more reasonable margin, so that’s pretty encouraging.

"It’s increasingly difficult for the industry to justify petrol at over $1.30 a litre anywhere except for extremely remote areas."

Mr Fites said refinery prices for unleaded petrol fell almost 30c a litre last month and cities such as Cairns had been all too slow to reflect that drop.

"The savings motorists should be receiving are being held up somewhere in the pipeline," he said.

RACQ is tipping that petrol will be at $1.15 a litre or less in Brisbane by Tuesday, and the Far North should follow suit.

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