ONE of the few remaining independent service stations in Ipswich has been credited with ensuring the city's fuel prices are among some of the lowest in the state.
The city bucked the trend in fuel prices by coming in cheaper than Brisbane and most other major centres in the latest RACQ fuel price report.
Ipswich's petrol averaged 143.6 cents per litre in August, with diesel at 143.5.
By comparison Brisbane, a city where fuel is usually slightly cheaper, was 145.2 for petrol and 145.4 for diesel.
Ipswich's average diesel price was the second-lowest across Queensland for the month, dropping 0.1 cents per litre from the July average.
Petrol increased in price by an average of 5.9 cents per litre for the month, but RACQ spokeswoman Lauren Ritchie said it would have risen even more if not for the heavy discounting undertaken by the Caltex service station on Old Toowoomba Rd, Leichhardt.
"During the month they were discounting by four cents a litre below the average price," Ms Ritchie said.
"This drove other retailers to drop their prices to stay competitive.
"With so few independent retailers around it is actually a fairly important role they play."
Service station owner Peter Meehan, who has operated the Leichhardt business - formerly as Kangaroo Fuels - for the last 12 years, said there were no immediate benefits for retailers in providing cheap fuel.
"Most service stations work on the smallest margins we can manage," he said.
"All it comes down to is competition in your area. If someone is particularly aggressive we will follow suit.
"If you look after your loyal customers they won't go looking elsewhere."
The northern centres of Mackay and Townsville were the cheapest for petrol and diesel respectively, with average petrol prices of 139.5 in Mackay and diesel prices of 142.3 in Townsville.
RACQ spokesman Michael Roth said the cheaper prices in central and north Queensland were due to a lag in high oil prices flowing on to regional areas.
"During August, motorists in most coastal cities in central and north Queensland could buy petrol and diesel cheaper than those in Brisbane, the Sunshine Coast and the Gold Coast, where ULP jumped 8.2 cents per litre compared to July," he said.
Brisbane's average ULP price in August was 4.6cpl higher than Sydney, 6.6cpl higher than Melbourne, 4.2cpl higher than Adelaide and 2.8cpl higher than Perth.
To view the RACQ Fuel Price Report for August, visit racq.com.au.