Why are fuel prices generally on average lower in Queensland than the rest of the country?
The Queensland Government has a Fuel Subsidy Scheme where fuel retailers are paid an 8.354 cents per litre subsidy (excluding GST) for reducing the price of petrol and on-road diesel they sell by the amount of the subsidy. This reduces Queensland prices by 9.2 cents per litre (including GST) compared to the price without the subsidy. To ensure NSW sellers of petrol and diesel south of the Queensland border are able to compete fairly with Queensland the NSW Government pays subsidies ranging from 8.35 to 1.37 cents per litre in five northern NSW zones.