❓ Mr Bradshaw questions the government's fuel pricing regime, particularly legislation allowing retailers to source up to 50% of fuel from alternative suppliers, and its expected impact on prices. The government outlines the expected benefits of the legislation.
AnsweredQoN 5Legislative Assembly
QuestionView source ↗
As retailers including franchisees will have a statutory right to source up to 50% of their fuel from any supplier this will provide the opportunity for increased price competition at the wholesale level and therefore lower prices for retailers which the Government expects will be passed on to consumers. The 50% legislation is also expected to put increased pressure on franchisors to supply fuel to their franchisees at competitive market prices. However, the 50% legislation will only override exclusive supply agreements binding retailers to a particular supplier entered into on or after 10 February 2001 being the date the Government was elected to office. Agreements or arrangements entered into before then will not be affected by the legislation. Retailers will be able to exercise the right to purchase up to 50% of their motor fuel from a source other than a primary supplier as agreements and arrangements entered into before 10 February 2001 progressively expire. This is but one part of the petrol pricing regime being put into place by the Government which should result in a more open, competitive and transparent market with lower prices for consumers. Therefore, the legislation is expected to exert gradual rather than immediate downward pressure on retail prices.
The 50% legislation is also expected to put increased pressure on franchisors to supply fuel to their franchisees at competitive market prices. However, the 50% legislation will only override exclusive supply agreements binding retailers to a particular supplier entered into on or after 10 February 2001 being the date the Government was elected to office. Agreements or arrangements entered into before then will not be affected by the legislation. Retailers will be able to exercise the right to purchase up to 50% of their motor fuel from a source other than a primary supplier as agreements and arrangements entered into before 10 February 2001 progressively expire. This is but one part of the petrol pricing regime being put into place by the Government which should result in a more open, competitive and transparent market with lower prices for consumers. Therefore, the legislation is expected to exert gradual rather than immediate downward pressure on retail prices.
However, the 50% legislation will only override exclusive supply agreements binding retailers to a particular supplier entered into on or after 10 February 2001 being the date the Government was elected to office. Agreements or arrangements entered into before then will not be affected by the legislation. Retailers will be able to exercise the right to purchase up to 50% of their motor fuel from a source other than a primary supplier as agreements and arrangements entered into before 10 February 2001 progressively expire. This is but one part of the petrol pricing regime being put into place by the Government which should result in a more open, competitive and transparent market with lower prices for consumers. Therefore, the legislation is expected to exert gradual rather than immediate downward pressure on retail prices.
Retailers will be able to exercise the right to purchase up to 50% of their motor fuel from a source other than a primary supplier as agreements and arrangements entered into before 10 February 2001 progressively expire. This is but one part of the petrol pricing regime being put into place by the Government which should result in a more open, competitive and transparent market with lower prices for consumers. Therefore, the legislation is expected to exert gradual rather than immediate downward pressure on retail prices.
Therefore, the legislation is expected to exert gradual rather than immediate downward pressure on retail prices.
The 50% legislation is also expected to put increased pressure on franchisors to supply fuel to their franchisees at competitive market prices. However, the 50% legislation will only override exclusive supply agreements binding retailers to a particular supplier entered into on or after 10 February 2001 being the date the Government was elected to office. Agreements or arrangements entered into before then will not be affected by the legislation. Retailers will be able to exercise the right to purchase up to 50% of their motor fuel from a source other than a primary supplier as agreements and arrangements entered into before 10 February 2001 progressively expire. This is but one part of the petrol pricing regime being put into place by the Government which should result in a more open, competitive and transparent market with lower prices for consumers. Therefore, the legislation is expected to exert gradual rather than immediate downward pressure on retail prices.
However, the 50% legislation will only override exclusive supply agreements binding retailers to a particular supplier entered into on or after 10 February 2001 being the date the Government was elected to office. Agreements or arrangements entered into before then will not be affected by the legislation. Retailers will be able to exercise the right to purchase up to 50% of their motor fuel from a source other than a primary supplier as agreements and arrangements entered into before 10 February 2001 progressively expire. This is but one part of the petrol pricing regime being put into place by the Government which should result in a more open, competitive and transparent market with lower prices for consumers. Therefore, the legislation is expected to exert gradual rather than immediate downward pressure on retail prices.
Retailers will be able to exercise the right to purchase up to 50% of their motor fuel from a source other than a primary supplier as agreements and arrangements entered into before 10 February 2001 progressively expire. This is but one part of the petrol pricing regime being put into place by the Government which should result in a more open, competitive and transparent market with lower prices for consumers. Therefore, the legislation is expected to exert gradual rather than immediate downward pressure on retail prices.
Therefore, the legislation is expected to exert gradual rather than immediate downward pressure on retail prices.
AnswerView source ↗
Answered
24 May 2001
Responded by
Minister for Consumer Affairs
Response time
22 days
The Government is implementing a range of measures to reduce the price of fuel. The legislation to amend the Petroleum Retailers Rights and Liabilities Act 1982 to allow retailers of motor fuel to purchase up to 50% of their fuel from a supplier(s) other than a primary supplier is one of these measures.
As retailers including franchisees will have a statutory right to source up to 50% of their fuel from any supplier this will provide the opportunity for increased price competition at the wholesale level and therefore lower prices for retailers which the Government expects will be passed on to consumers.
The 50% legislation is also expected to put increased pressure on franchisors to supply fuel to their franchisees at competitive market prices.
However, the 50% legislation will only override exclusive supply agreements binding retailers to a particular supplier entered into on or after 10 February 2001 being the date the Government was elected to office. Agreements or arrangements entered into before then will not be affected by the legislation.
Retailers will be able to exercise the right to purchase up to 50% of their motor fuel from a source other than a primary supplier as agreements and arrangements entered into before 10 February 2001 progressively expire. This is but one part of the petrol pricing regime being put into place by the Government which should result in a more open, competitive and transparent market with lower prices for consumers.
Therefore, the legislation is expected to exert gradual rather than immediate downward pressure on retail prices.
As retailers including franchisees will have a statutory right to source up to 50% of their fuel from any supplier this will provide the opportunity for increased price competition at the wholesale level and therefore lower prices for retailers which the Government expects will be passed on to consumers.
The 50% legislation is also expected to put increased pressure on franchisors to supply fuel to their franchisees at competitive market prices.
However, the 50% legislation will only override exclusive supply agreements binding retailers to a particular supplier entered into on or after 10 February 2001 being the date the Government was elected to office. Agreements or arrangements entered into before then will not be affected by the legislation.
Retailers will be able to exercise the right to purchase up to 50% of their motor fuel from a source other than a primary supplier as agreements and arrangements entered into before 10 February 2001 progressively expire. This is but one part of the petrol pricing regime being put into place by the Government which should result in a more open, competitive and transparent market with lower prices for consumers.
Therefore, the legislation is expected to exert gradual rather than immediate downward pressure on retail prices.
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