Regional Queensland petrol stations are being accused of price gouging as the divide between the city and country is fuelled at the bowser.

Key points: The price of fuel in Mt Isa is almost 75 per cent higher than in Brisbane

The price of fuel in Mt Isa is almost 75 per cent higher than in Brisbane Fueltrac says discounting by independents forces big players to follow suit

Fueltrac says discounting by independents forces big players to follow suit Federal MP Warren Entsch says the price gouging looks like "collusion"

The price of oil has plummeted as much of the world stays home, it even traded in negative price for the first time in history in the United States this week.

Despite the falls, some cities in regional Queensland are not seeing the full benefits, paying up to 80 per cent more than drivers in Brisbane.

Some petrol stations are charging less than 90 cents per litre for unleaded in the capital today, but in Mount Isa it is closer to $1.45.

In the central Queensland town of Biloela, the price is about $1.28, while in Longreach it is about $1.34.

Mackay, Townsville and Cairns have been charging between $1.01 and $1.20.

There are also large price differences between neighbouring towns.

Ingham motorists are paying between $1.09 and $1.27, while 50 kilometres away in Cardwell, residents pay less than $1.

There is a massive difference in fuel prices between Brisbane and many regional centres. ( ABC News: Chris Gillette )

The RACQ and regionally-based politicians have criticised the profit margins outside the south-east, including LNP Federal Member for Leichhardt Warren Entsch.

"You've got to ask the question about collusion … there is no doubt in my mind that there is something going on here," Mr Entsch said.

The terminal gate price, which is the wholesale price paid at the port, is as low as 80c in Brisbane today.

While regional wholesale prices are generally higher each day, Renee Smith from the RACQ said customers in regional Queensland should not be paying much more than $1 per litre for unleaded petrol.

"In some parts of the state, prices are dirt cheap — we haven't seen in about 15 years," Ms Smith said.

"However, we are seeing price gouging in other parts of the state and the prices are way too high."

Petrol price falls are driven by independent stations, Geoff Trotter says. ( ABC News: Chris Gillette )

'Still room for profit if prices were lower'

Some Mount Isa retailers did not want to comment when approached by the ABC.

Others justified their higher prices by saying they needed to remain competitive.

Soren Nannestad, the owner of an independent petrol station in Townsville selling fuel at just shy of $1.03 per litre, said he did not understand why others were not dropping their prices.

Costs are lower in cities with more competition between service stations. ( ABC News: Chris Gillette )

"I've still been making my margins," Mr Nannestad said.

"There's been a massive increase in customers … a lot of customers have been really happy seeing that I've been dropping the price.

"I don't know why they're holding them up high — obviously running a different strategy to what I am."

'Independents need to pull the trigger'

Geoff Trotter from industry watchdog Fueltrac said the leadership of independents could influence prices.

"Unless the independents are prepared to discount, then those majors invariably won't," Mr Trotter said.

Petrol has fallen to its lowest price in a generation in Brisbane, but not in many regional centres. ( ABC News: Matt Eaton )

He said while terminal gate prices vary in the regions, there is a road freight component that also brings up the price.

He believed some regional petrol stations may be having higher prices because they are trying to offload the stock bought when the price was higher.

"The sales volumes, I suspect, in [places like] Rockhampton would have dropped quite dramatically in line with most other retail service station areas due to the [coronavirus] restrictions.

"It probably means that dealers have stock that they may well have purchased a week or even longer ago when the wholesale price was higher."

Motorists urged to monitor prices

Regionally based Queensland politicians have been calling on the ACCC to investigate the issue.

The Australian Competition and Consumer Commission (ACCC) this week urged petrol retailers to reduce their prices in line with lower oil prices.

KAP Member for Hinchinbrook Nick Dametto said the ACCC's response was "toothless".

"There should be more teeth on the ACCC and there's more that the Federal Government needs to do," Mr Dametto said.

Ms Smith said it was vital healthy competition was maintained in the regional fuel market.

"If the ACCC sees merit in this, it absolutely should be investigating collusion," she said.

"That is the only way we could stop this pricing behaviour if there is evidence of collusion.

"We need motorists right now to make use of the real-time fuel data that is available online as part of a trial now … and don't give your business to those who are overcharging."