Why is fuel more expensive in Tasmania than on the mainland?

Tasmania's fuel prices are typically 3-8 cents per litre above mainland capital city averages. This premium is mainly due to additional transport costs — all fuel must be shipped across Bass Strait from mainland refineries and terminals. The smaller market and fewer stations also reduce competitive pressure compared to larger capital cities.

Is fuel cheaper in Hobart or Launceston?

Hobart and Launceston have similar average fuel prices, though Launceston occasionally edges slightly lower due to its proximity to the port at Devonport where fuel arrives. The difference is usually small — 1-3 cents per litre. Both cities have enough competition to keep prices within a reasonable range of each other.

Are there fuel price cycles in Tasmania?

Tasmania's fuel price cycles are much less pronounced than mainland capitals. While prices do fluctuate, the swings are typically only 5-10 cents per litre rather than the 30-40 cent cycles seen in Sydney or Melbourne. This makes timing less critical in Tasmania, though mid-week fill-ups are still slightly cheaper on average.

Fuel Prices in Tasmania: Hobart & Launceston

Tasmania's island geography gives it a unique fuel pricing landscape. All fuel must cross Bass Strait, adding a transport premium on top of mainland prices. Despite this, Hobart and Launceston maintain reasonably competitive markets, and understanding how pricing works across the island can help you save on every fill-up.

The Bass Strait Premium

Every litre of fuel sold in Tasmania has been shipped across Bass Strait from mainland terminals, primarily through the port at Devonport. This adds a transport cost that's reflected in the retail price — typically 3-8 cents per litre above mainland capital city averages. This premium is relatively constant and is simply the cost of island fuel supply. It's one reason Tasmanian drivers benefit from every other saving strategy available to them.

Hobart

Hobart, as Tasmania's capital and largest city, has the most competitive fuel market on the island. The northern suburbs around Glenorchy and Moonah tend to have the cheapest stations, while the CBD and eastern shore can be slightly more expensive. Hobart's price cycle is much flatter than mainland cities — swings of 5-10 cents per litre rather than the dramatic 30-40 cent cycles of Sydney or Melbourne. Prices still tend to be marginally lower mid-week.

Launceston

Launceston, Tasmania's second city, has a fuel market similar in size and competitiveness to Hobart. Its proximity to Devonport — where fuel shipments arrive — can occasionally give it a slight price edge, though the difference is typically minimal. Stations along the Bass Highway between Launceston and Devonport are convenient for travellers but not always the cheapest option.

Regional Tasmania

Smaller Tasmanian towns generally see prices 5-10 cents above Hobart and Launceston. The west coast — Strahan, Queenstown, and surrounds — tends to be the most expensive region due to its remoteness and limited competition. The east coast tourist route through Bicheno and Swansea also sees moderate premiums during holiday periods. Devonport and Burnie on the north coast offer pricing closer to Launceston levels.

Tips for Saving in Tasmania

Since Tasmania's price cycle is relatively flat, timing matters less than location. Focus on comparing prices across stations using Benzio rather than trying to time the cycle. If you're touring the island, fill up in Hobart or Launceston before heading to the west coast or remote areas. Consider E10 if your car is compatible — where available, it offers the same 3-5 cent saving as on the mainland. Check our fuel saving tips guide for more ways to reduce your fuel costs regardless of where you are in Tasmania.