MECHANISMS allowing the WA Government to set the maximum wholesale petrol price at terminals should be in effect by the end of the month.
MECHANISMS allowing the WA Government to set the maximum wholesale petrol price at terminals should be in effect by the end of the month.
The mechanisms will be the second part of the Petroleum Pricing Amendment Act to take effect.
The first part created the FuelWatch system that requires petrol stations to nominate the price they will be selling petrol at and stick to that price for the next 24 hours.
Independent service station operators say this part of the Act has given the large oil companies a free kick against them.
They argue the 24-hour price fix makes it easier for the big oil companies to systematically undercut any independent service stations operating near their stations.
Some hoped the second part of the legislation requiring the maximum wholesale fuel price to be fixed at the terminal gave them a chance of survival.
However, Service Station Development Corporation head Col Stratton said the Government was trying to run oil companies.
“It cannot work because we don’t find, refine and wholesale oil,” Mr Stratton said.
Ministry of Fair Trading assistant commissioner pricing Tim Shanahan said the ministry was considering a report from Curtin Consulting on how to put the wholesale price fixing mechanisms into place.
“The view of the legislators is the terminal fuel price is higher than the retail price which throws up issues of price support from the oil companies,” Mr Shanahan said.
“The idea of fixing the maximum wholesale price is to impose price clarity.
“We hope the wholesale price will be seen to be as transparent as possible. It will let consumers make up their mind about the margins the oil companies charge.
“There is certainly a view at the moment that current prices don’t provide that level of clarity. We’re keenly aware of the impact these sorts of arrangements will have.
“We are also aware of the impact FuelWatch has on independents.”
Motor Trade Association of WA executive director Peter Fitzpatrick said the price monitoring system was a licence for the oil companies to print money.
“If a petrol station is not in the top 10, it might as well throw out its bread and send its staff home,” Mr Fitzpatrick said.
“We have to keep small independent petrol stations going or we’ll be at the mercy of the oil companies that run the business from the wellhead to the bowser.”
The mechanisms will be the second part of the Petroleum Pricing Amendment Act to take effect.
The first part created the FuelWatch system that requires petrol stations to nominate the price they will be selling petrol at and stick to that price for the next 24 hours.
Independent service station operators say this part of the Act has given the large oil companies a free kick against them.
They argue the 24-hour price fix makes it easier for the big oil companies to systematically undercut any independent service stations operating near their stations.
Some hoped the second part of the legislation requiring the maximum wholesale fuel price to be fixed at the terminal gave them a chance of survival.
However, Service Station Development Corporation head Col Stratton said the Government was trying to run oil companies.
“It cannot work because we don’t find, refine and wholesale oil,” Mr Stratton said.
Ministry of Fair Trading assistant commissioner pricing Tim Shanahan said the ministry was considering a report from Curtin Consulting on how to put the wholesale price fixing mechanisms into place.
“The view of the legislators is the terminal fuel price is higher than the retail price which throws up issues of price support from the oil companies,” Mr Shanahan said.
“The idea of fixing the maximum wholesale price is to impose price clarity.
“We hope the wholesale price will be seen to be as transparent as possible. It will let consumers make up their mind about the margins the oil companies charge.
“There is certainly a view at the moment that current prices don’t provide that level of clarity. We’re keenly aware of the impact these sorts of arrangements will have.
“We are also aware of the impact FuelWatch has on independents.”
Motor Trade Association of WA executive director Peter Fitzpatrick said the price monitoring system was a licence for the oil companies to print money.
“If a petrol station is not in the top 10, it might as well throw out its bread and send its staff home,” Mr Fitzpatrick said.
“We have to keep small independent petrol stations going or we’ll be at the mercy of the oil companies that run the business from the wellhead to the bowser.”
