❓ Mr Waldron questions the Minister on evidence supporting fuel price reductions in Albany due to mandatory price boards, and the persistent price disparity between Albany and Perth.
AnsweredQoN 446Legislative Assembly
QuestionView source ↗
FUEL PRICES, METROPOLITAN AND COUNTRY AREAS 446. Mr WALDRON to the Minister for Consumer and Employment Protection: The Minister’s media statement titled “Government extends petrol price boards State-wide” claims credit for a reduction in fuel prices in the Albany region due to the mandatory display of petrol price boards, and I ask - (1) What evidence does the minister have that the 2c per litre is a real reduction in fuel prices from the wholesaler and not just a cut in the retail margin? (2) Given that the price of fuel in Albany is still, on average, 10.8c per litre higher than that in Perth and the freight component is only between 1c and 2c per litre, how can the minister call this trial a success? Mr KOBELKE
AnswerView source ↗
I thank the member for some notice of this question. (1) This relates to the 2c a litre reduction in the differential between fuel prices in Albany and those in Perth following the introduction of price boards in Albany. Albany was one of the very few regional cities where the use of price boards was not widespread and, therefore, it was targeted for the implementation of this program, which is now flowing through to all major regional centres in Western Australia. The member for Albany was a very strong supporter of that program and urged the Government to implement it. He has reported to me that it appears to have been a success in Albany. This part of the question relates only to the retail margin, which is not a claim we have made; it is a different matter. What we are talking about is the actual price at the pump to motorists, not the constituent parts of that price. It is a reasonable question, but that was not our claim. Through FuelWatch we can now obtain detailed information on the retail price of fuel. Using FuelWatch, we obtained accurate figures as to the retail price of fuel in Albany for the month before price boards were introduced and the month after. That was the evidence on which we based the contention that there had been a 2c reduction in the quite unacceptable margin between the price of fuel in Albany and that in Perth. For most of rural and regional Western Australia that margin is still totally unacceptable, and that refers to the second part of the member’s question. The Albany Advertiser reported a Caltex owner in York Street as saying that in his estimation the display of fuel boards in Albany had reduced the retail price of fuel by 2c a litre. There is ample evidence that signboards have been effective in Albany in reducing the retail price of fuel. As to the constituent parts of the price - whether wholesale or retail - we did not enter into that and I am not addressing that in my answer to this part of the member’s question. (2) This relates to the very high differential between the price country motorists pay for their fuel and that paid in metropolitan Perth. I have said to the House many times already that this matter is on our agenda and we will address it, but until we are absolutely confident that the wholesale price is consistently available, to put in place a retail cap - which we are committed to doing - would simply drive some of those service stations out of business. That is not our intent. We are progressing with this matter. Our forensic auditors are investigating the fuel companies and some prosecutions are pending. We are going to make sure that fuel is available at the wholesale price on a consistent, ongoing basis and then we will move to place a cap on retail centres. The member also indicated some interest as to how this would affect fuel retailers in smaller towns. We do not intend to place regulatory controls on them, such as signboards or a cap, in the foreseeable future. Our whole target has been major regional centres, and we understand that to try to impose a regulatory regime in small country towns where there may be only one service station could simply drive that business out of town, and we have no intention of doing that. If we can get the fuel price down in the major regional centres, that will serve motorists throughout Western Australia and it will indirectly impact on retailers in smaller towns, although that is something over which we do not have control. However, we are not committed in any way to placing a regulatory regime on fuel retailers in smaller country towns.
FUEL PRICES, METROPOLITAN AND COUNTRY AREAS
The Minister’s media statement titled “Government extends petrol price boards State-wide” claims credit for a reduction in fuel prices in the Albany region due to the mandatory display of petrol price boards, and I ask - (1) What evidence does the minister have that the 2c per litre is a real reduction in fuel prices from the wholesaler and not just a cut in the retail margin? (2) Given that the price of fuel in Albany is still, on average, 10.8c per litre higher than that in Perth and the freight component is only between 1c and 2c per litre, how can the minister call this trial a success? Mr KOBELKE replied: I thank the member for some notice of this question. (1) This relates to the 2c a litre reduction in the differential between fuel prices in Albany and those in Perth following the introduction of price boards in Albany. Albany was one of the very few regional cities where the use of price boards was not widespread and, therefore, it was targeted for the implementation of this program, which is now flowing through to all major regional centres in Western Australia. The member for Albany was a very strong supporter of that program and urged the Government to implement it. He has reported to me that it appears to have been a success in Albany. This part of the question relates only to the retail margin, which is not a claim we have made; it is a different matter. What we are talking about is the actual price at the pump to motorists, not the constituent parts of that price. It is a reasonable question, but that was not our claim. Through FuelWatch we can now obtain detailed information on the retail price of fuel. Using FuelWatch, we obtained accurate figures as to the retail price of fuel in Albany for the month before price boards were introduced and the month after. That was the evidence on which we based the contention that there had been a 2c reduction in the quite unacceptable margin between the price of fuel in Albany and that in Perth. For most of rural and regional Western Australia that margin is still totally unacceptable, and that refers to the second part of the member’s question. The Albany Advertiser reported a Caltex owner in York Street as saying that in his estimation the display of fuel boards in Albany had reduced the retail price of fuel by 2c a litre. There is ample evidence that signboards have been effective in Albany in reducing the retail price of fuel. As to the constituent parts of the price - whether wholesale or retail - we did not enter into that and I am not addressing that in my answer to this part of the member’s question. (2) This relates to the very high differential between the price country motorists pay for their fuel and that paid in metropolitan Perth. I have said to the House many times already that this matter is on our agenda and we will address it, but until we are absolutely confident that the wholesale price is consistently available, to put in place a retail cap - which we are committed to doing - would simply drive some of those service stations out of business. That is not our intent. We are progressing with this matter. Our forensic auditors are investigating the fuel companies and some prosecutions are pending. We are going to make sure that fuel is available at the wholesale price on a consistent, ongoing basis and then we will move to place a cap on retail centres. The member also indicated some interest as to how this would affect fuel retailers in smaller towns. We do not intend to place regulatory controls on them, such as signboards or a cap, in the foreseeable future. Our whole target has been major regional centres, and we understand that to try to impose a regulatory regime in small country towns where there may be only one service station could simply drive that business out of town, and we have no intention of doing that. If we can get the fuel price down in the major regional centres, that will serve motorists throughout Western Australia and it will indirectly impact on retailers in smaller towns, although that is something over which we do not have control. However, we are not committed in any way to placing a regulatory regime on fuel retailers in smaller country towns.
(1) What evidence does the minister have that the 2c per litre is a real reduction in fuel prices from the wholesaler and not just a cut in the retail margin? (2) Given that the price of fuel in Albany is still, on average, 10.8c per litre higher than that in Perth and the freight component is only between 1c and 2c per litre, how can the minister call this trial a success? Mr KOBELKE replied: I thank the member for some notice of this question. (1) This relates to the 2c a litre reduction in the differential between fuel prices in Albany and those in Perth following the introduction of price boards in Albany. Albany was one of the very few regional cities where the use of price boards was not widespread and, therefore, it was targeted for the implementation of this program, which is now flowing through to all major regional centres in Western Australia. The member for Albany was a very strong supporter of that program and urged the Government to implement it. He has reported to me that it appears to have been a success in Albany. This part of the question relates only to the retail margin, which is not a claim we have made; it is a different matter. What we are talking about is the actual price at the pump to motorists, not the constituent parts of that price. It is a reasonable question, but that was not our claim. Through FuelWatch we can now obtain detailed information on the retail price of fuel. Using FuelWatch, we obtained accurate figures as to the retail price of fuel in Albany for the month before price boards were introduced and the month after. That was the evidence on which we based the contention that there had been a 2c reduction in the quite unacceptable margin between the price of fuel in Albany and that in Perth. For most of rural and regional Western Australia that margin is still totally unacceptable, and that refers to the second part of the member’s question. The Albany Advertiser reported a Caltex owner in York Street as saying that in his estimation the display of fuel boards in Albany had reduced the retail price of fuel by 2c a litre. There is ample evidence that signboards have been effective in Albany in reducing the retail price of fuel. As to the constituent parts of the price - whether wholesale or retail - we did not enter into that and I am not addressing that in my answer to this part of the member’s question. (2) This relates to the very high differential between the price country motorists pay for their fuel and that paid in metropolitan Perth. I have said to the House many times already that this matter is on our agenda and we will address it, but until we are absolutely confident that the wholesale price is consistently available, to put in place a retail cap - which we are committed to doing - would simply drive some of those service stations out of business. That is not our intent. We are progressing with this matter. Our forensic auditors are investigating the fuel companies and some prosecutions are pending. We are going to make sure that fuel is available at the wholesale price on a consistent, ongoing basis and then we will move to place a cap on retail centres. The member also indicated some interest as to how this would affect fuel retailers in smaller towns. We do not intend to place regulatory controls on them, such as signboards or a cap, in the foreseeable future. Our whole target has been major regional centres, and we understand that to try to impose a regulatory regime in small country towns where there may be only one service station could simply drive that business out of town, and we have no intention of doing that. If we can get the fuel price down in the major regional centres, that will serve motorists throughout Western Australia and it will indirectly impact on retailers in smaller towns, although that is something over which we do not have control. However, we are not committed in any way to placing a regulatory regime on fuel retailers in smaller country towns.
(2) Given that the price of fuel in Albany is still, on average, 10.8c per litre higher than that in Perth and the freight component is only between 1c and 2c per litre, how can the minister call this trial a success? Mr KOBELKE replied: I thank the member for some notice of this question. (1) This relates to the 2c a litre reduction in the differential between fuel prices in Albany and those in Perth following the introduction of price boards in Albany. Albany was one of the very few regional cities where the use of price boards was not widespread and, therefore, it was targeted for the implementation of this program, which is now flowing through to all major regional centres in Western Australia. The member for Albany was a very strong supporter of that program and urged the Government to implement it. He has reported to me that it appears to have been a success in Albany. This part of the question relates only to the retail margin, which is not a claim we have made; it is a different matter. What we are talking about is the actual price at the pump to motorists, not the constituent parts of that price. It is a reasonable question, but that was not our claim. Through FuelWatch we can now obtain detailed information on the retail price of fuel. Using FuelWatch, we obtained accurate figures as to the retail price of fuel in Albany for the month before price boards were introduced and the month after. That was the evidence on which we based the contention that there had been a 2c reduction in the quite unacceptable margin between the price of fuel in Albany and that in Perth. For most of rural and regional Western Australia that margin is still totally unacceptable, and that refers to the second part of the member’s question. The Albany Advertiser reported a Caltex owner in York Street as saying that in his estimation the display of fuel boards in Albany had reduced the retail price of fuel by 2c a litre. There is ample evidence that signboards have been effective in Albany in reducing the retail price of fuel. As to the constituent parts of the price - whether wholesale or retail - we did not enter into that and I am not addressing that in my answer to this part of the member’s question. (2) This relates to the very high differential between the price country motorists pay for their fuel and that paid in metropolitan Perth. I have said to the House many times already that this matter is on our agenda and we will address it, but until we are absolutely confident that the wholesale price is consistently available, to put in place a retail cap - which we are committed to doing - would simply drive some of those service stations out of business. That is not our intent. We are progressing with this matter. Our forensic auditors are investigating the fuel companies and some prosecutions are pending. We are going to make sure that fuel is available at the wholesale price on a consistent, ongoing basis and then we will move to place a cap on retail centres. The member also indicated some interest as to how this would affect fuel retailers in smaller towns. We do not intend to place regulatory controls on them, such as signboards or a cap, in the foreseeable future. Our whole target has been major regional centres, and we understand that to try to impose a regulatory regime in small country towns where there may be only one service station could simply drive that business out of town, and we have no intention of doing that. If we can get the fuel price down in the major regional centres, that will serve motorists throughout Western Australia and it will indirectly impact on retailers in smaller towns, although that is something over which we do not have control. However, we are not committed in any way to placing a regulatory regime on fuel retailers in smaller country towns.
Mr KOBELKE replied: I thank the member for some notice of this question. (1) This relates to the 2c a litre reduction in the differential between fuel prices in Albany and those in Perth following the introduction of price boards in Albany. Albany was one of the very few regional cities where the use of price boards was not widespread and, therefore, it was targeted for the implementation of this program, which is now flowing through to all major regional centres in Western Australia. The member for Albany was a very strong supporter of that program and urged the Government to implement it. He has reported to me that it appears to have been a success in Albany. This part of the question relates only to the retail margin, which is not a claim we have made; it is a different matter. What we are talking about is the actual price at the pump to motorists, not the constituent parts of that price. It is a reasonable question, but that was not our claim. Through FuelWatch we can now obtain detailed information on the retail price of fuel. Using FuelWatch, we obtained accurate figures as to the retail price of fuel in Albany for the month before price boards were introduced and the month after. That was the evidence on which we based the contention that there had been a 2c reduction in the quite unacceptable margin between the price of fuel in Albany and that in Perth. For most of rural and regional Western Australia that margin is still totally unacceptable, and that refers to the second part of the member’s question. The Albany Advertiser reported a Caltex owner in York Street as saying that in his estimation the display of fuel boards in Albany had reduced the retail price of fuel by 2c a litre. There is ample evidence that signboards have been effective in Albany in reducing the retail price of fuel. As to the constituent parts of the price - whether wholesale or retail - we did not enter into that and I am not addressing that in my answer to this part of the member’s question. (2) This relates to the very high differential between the price country motorists pay for their fuel and that paid in metropolitan Perth. I have said to the House many times already that this matter is on our agenda and we will address it, but until we are absolutely confident that the wholesale price is consistently available, to put in place a retail cap - which we are committed to doing - would simply drive some of those service stations out of business. That is not our intent. We are progressing with this matter. Our forensic auditors are investigating the fuel companies and some prosecutions are pending. We are going to make sure that fuel is available at the wholesale price on a consistent, ongoing basis and then we will move to place a cap on retail centres. The member also indicated some interest as to how this would affect fuel retailers in smaller towns. We do not intend to place regulatory controls on them, such as signboards or a cap, in the foreseeable future. Our whole target has been major regional centres, and we understand that to try to impose a regulatory regime in small country towns where there may be only one service station could simply drive that business out of town, and we have no intention of doing that. If we can get the fuel price down in the major regional centres, that will serve motorists throughout Western Australia and it will indirectly impact on retailers in smaller towns, although that is something over which we do not have control. However, we are not committed in any way to placing a regulatory regime on fuel retailers in smaller country towns.
I thank the member for some notice of this question. (1) This relates to the 2c a litre reduction in the differential between fuel prices in Albany and those in Perth following the introduction of price boards in Albany. Albany was one of the very few regional cities where the use of price boards was not widespread and, therefore, it was targeted for the implementation of this program, which is now flowing through to all major regional centres in Western Australia. The member for Albany was a very strong supporter of that program and urged the Government to implement it. He has reported to me that it appears to have been a success in Albany. This part of the question relates only to the retail margin, which is not a claim we have made; it is a different matter. What we are talking about is the actual price at the pump to motorists, not the constituent parts of that price. It is a reasonable question, but that was not our claim. Through FuelWatch we can now obtain detailed information on the retail price of fuel. Using FuelWatch, we obtained accurate figures as to the retail price of fuel in Albany for the month before price boards were introduced and the month after. That was the evidence on which we based the contention that there had been a 2c reduction in the quite unacceptable margin between the price of fuel in Albany and that in Perth. For most of rural and regional Western Australia that margin is still totally unacceptable, and that refers to the second part of the member’s question. The Albany Advertiser reported a Caltex owner in York Street as saying that in his estimation the display of fuel boards in Albany had reduced the retail price of fuel by 2c a litre. There is ample evidence that signboards have been effective in Albany in reducing the retail price of fuel. As to the constituent parts of the price - whether wholesale or retail - we did not enter into that and I am not addressing that in my answer to this part of the member’s question. (2) This relates to the very high differential between the price country motorists pay for their fuel and that paid in metropolitan Perth. I have said to the House many times already that this matter is on our agenda and we will address it, but until we are absolutely confident that the wholesale price is consistently available, to put in place a retail cap - which we are committed to doing - would simply drive some of those service stations out of business. That is not our intent. We are progressing with this matter. Our forensic auditors are investigating the fuel companies and some prosecutions are pending. We are going to make sure that fuel is available at the wholesale price on a consistent, ongoing basis and then we will move to place a cap on retail centres. The member also indicated some interest as to how this would affect fuel retailers in smaller towns. We do not intend to place regulatory controls on them, such as signboards or a cap, in the foreseeable future. Our whole target has been major regional centres, and we understand that to try to impose a regulatory regime in small country towns where there may be only one service station could simply drive that business out of town, and we have no intention of doing that. If we can get the fuel price down in the major regional centres, that will serve motorists throughout Western Australia and it will indirectly impact on retailers in smaller towns, although that is something over which we do not have control. However, we are not committed in any way to placing a regulatory regime on fuel retailers in smaller country towns.
(1) This relates to the 2c a litre reduction in the differential between fuel prices in Albany and those in Perth following the introduction of price boards in Albany. Albany was one of the very few regional cities where the use of price boards was not widespread and, therefore, it was targeted for the implementation of this program, which is now flowing through to all major regional centres in Western Australia. The member for Albany was a very strong supporter of that program and urged the Government to implement it. He has reported to me that it appears to have been a success in Albany. This part of the question relates only to the retail margin, which is not a claim we have made; it is a different matter. What we are talking about is the actual price at the pump to motorists, not the constituent parts of that price. It is a reasonable question, but that was not our claim. Through FuelWatch we can now obtain detailed information on the retail price of fuel. Using FuelWatch, we obtained accurate figures as to the retail price of fuel in Albany for the month before price boards were introduced and the month after. That was the evidence on which we based the contention that there had been a 2c reduction in the quite unacceptable margin between the price of fuel in Albany and that in Perth. For most of rural and regional Western Australia that margin is still totally unacceptable, and that refers to the second part of the member’s question. The Albany Advertiser reported a Caltex owner in York Street as saying that in his estimation the display of fuel boards in Albany had reduced the retail price of fuel by 2c a litre. There is ample evidence that signboards have been effective in Albany in reducing the retail price of fuel. As to the constituent parts of the price - whether wholesale or retail - we did not enter into that and I am not addressing that in my answer to this part of the member’s question. (2) This relates to the very high differential between the price country motorists pay for their fuel and that paid in metropolitan Perth. I have said to the House many times already that this matter is on our agenda and we will address it, but until we are absolutely confident that the wholesale price is consistently available, to put in place a retail cap - which we are committed to doing - would simply drive some of those service stations out of business. That is not our intent. We are progressing with this matter. Our forensic auditors are investigating the fuel companies and some prosecutions are pending. We are going to make sure that fuel is available at the wholesale price on a consistent, ongoing basis and then we will move to place a cap on retail centres. The member also indicated some interest as to how this would affect fuel retailers in smaller towns. We do not intend to place regulatory controls on them, such as signboards or a cap, in the foreseeable future. Our whole target has been major regional centres, and we understand that to try to impose a regulatory regime in small country towns where there may be only one service station could simply drive that business out of town, and we have no intention of doing that. If we can get the fuel price down in the major regional centres, that will serve motorists throughout Western Australia and it will indirectly impact on retailers in smaller towns, although that is something over which we do not have control. However, we are not committed in any way to placing a regulatory regime on fuel retailers in smaller country towns.
The Albany Advertiser reported a Caltex owner in York Street as saying that in his estimation the display of fuel boards in Albany had reduced the retail price of fuel by 2c a litre. There is ample evidence that signboards have been effective in Albany in reducing the retail price of fuel. As to the constituent parts of the price - whether wholesale or retail - we did not enter into that and I am not addressing that in my answer to this part of the member’s question.
FUEL PRICES, METROPOLITAN AND COUNTRY AREAS
The Minister’s media statement titled “Government extends petrol price boards State-wide” claims credit for a reduction in fuel prices in the Albany region due to the mandatory display of petrol price boards, and I ask - (1) What evidence does the minister have that the 2c per litre is a real reduction in fuel prices from the wholesaler and not just a cut in the retail margin? (2) Given that the price of fuel in Albany is still, on average, 10.8c per litre higher than that in Perth and the freight component is only between 1c and 2c per litre, how can the minister call this trial a success? Mr KOBELKE replied: I thank the member for some notice of this question. (1) This relates to the 2c a litre reduction in the differential between fuel prices in Albany and those in Perth following the introduction of price boards in Albany. Albany was one of the very few regional cities where the use of price boards was not widespread and, therefore, it was targeted for the implementation of this program, which is now flowing through to all major regional centres in Western Australia. The member for Albany was a very strong supporter of that program and urged the Government to implement it. He has reported to me that it appears to have been a success in Albany. This part of the question relates only to the retail margin, which is not a claim we have made; it is a different matter. What we are talking about is the actual price at the pump to motorists, not the constituent parts of that price. It is a reasonable question, but that was not our claim. Through FuelWatch we can now obtain detailed information on the retail price of fuel. Using FuelWatch, we obtained accurate figures as to the retail price of fuel in Albany for the month before price boards were introduced and the month after. That was the evidence on which we based the contention that there had been a 2c reduction in the quite unacceptable margin between the price of fuel in Albany and that in Perth. For most of rural and regional Western Australia that margin is still totally unacceptable, and that refers to the second part of the member’s question. The Albany Advertiser reported a Caltex owner in York Street as saying that in his estimation the display of fuel boards in Albany had reduced the retail price of fuel by 2c a litre. There is ample evidence that signboards have been effective in Albany in reducing the retail price of fuel. As to the constituent parts of the price - whether wholesale or retail - we did not enter into that and I am not addressing that in my answer to this part of the member’s question. (2) This relates to the very high differential between the price country motorists pay for their fuel and that paid in metropolitan Perth. I have said to the House many times already that this matter is on our agenda and we will address it, but until we are absolutely confident that the wholesale price is consistently available, to put in place a retail cap - which we are committed to doing - would simply drive some of those service stations out of business. That is not our intent. We are progressing with this matter. Our forensic auditors are investigating the fuel companies and some prosecutions are pending. We are going to make sure that fuel is available at the wholesale price on a consistent, ongoing basis and then we will move to place a cap on retail centres. The member also indicated some interest as to how this would affect fuel retailers in smaller towns. We do not intend to place regulatory controls on them, such as signboards or a cap, in the foreseeable future. Our whole target has been major regional centres, and we understand that to try to impose a regulatory regime in small country towns where there may be only one service station could simply drive that business out of town, and we have no intention of doing that. If we can get the fuel price down in the major regional centres, that will serve motorists throughout Western Australia and it will indirectly impact on retailers in smaller towns, although that is something over which we do not have control. However, we are not committed in any way to placing a regulatory regime on fuel retailers in smaller country towns.
(1) What evidence does the minister have that the 2c per litre is a real reduction in fuel prices from the wholesaler and not just a cut in the retail margin? (2) Given that the price of fuel in Albany is still, on average, 10.8c per litre higher than that in Perth and the freight component is only between 1c and 2c per litre, how can the minister call this trial a success? Mr KOBELKE replied: I thank the member for some notice of this question. (1) This relates to the 2c a litre reduction in the differential between fuel prices in Albany and those in Perth following the introduction of price boards in Albany. Albany was one of the very few regional cities where the use of price boards was not widespread and, therefore, it was targeted for the implementation of this program, which is now flowing through to all major regional centres in Western Australia. The member for Albany was a very strong supporter of that program and urged the Government to implement it. He has reported to me that it appears to have been a success in Albany. This part of the question relates only to the retail margin, which is not a claim we have made; it is a different matter. What we are talking about is the actual price at the pump to motorists, not the constituent parts of that price. It is a reasonable question, but that was not our claim. Through FuelWatch we can now obtain detailed information on the retail price of fuel. Using FuelWatch, we obtained accurate figures as to the retail price of fuel in Albany for the month before price boards were introduced and the month after. That was the evidence on which we based the contention that there had been a 2c reduction in the quite unacceptable margin between the price of fuel in Albany and that in Perth. For most of rural and regional Western Australia that margin is still totally unacceptable, and that refers to the second part of the member’s question. The Albany Advertiser reported a Caltex owner in York Street as saying that in his estimation the display of fuel boards in Albany had reduced the retail price of fuel by 2c a litre. There is ample evidence that signboards have been effective in Albany in reducing the retail price of fuel. As to the constituent parts of the price - whether wholesale or retail - we did not enter into that and I am not addressing that in my answer to this part of the member’s question. (2) This relates to the very high differential between the price country motorists pay for their fuel and that paid in metropolitan Perth. I have said to the House many times already that this matter is on our agenda and we will address it, but until we are absolutely confident that the wholesale price is consistently available, to put in place a retail cap - which we are committed to doing - would simply drive some of those service stations out of business. That is not our intent. We are progressing with this matter. Our forensic auditors are investigating the fuel companies and some prosecutions are pending. We are going to make sure that fuel is available at the wholesale price on a consistent, ongoing basis and then we will move to place a cap on retail centres. The member also indicated some interest as to how this would affect fuel retailers in smaller towns. We do not intend to place regulatory controls on them, such as signboards or a cap, in the foreseeable future. Our whole target has been major regional centres, and we understand that to try to impose a regulatory regime in small country towns where there may be only one service station could simply drive that business out of town, and we have no intention of doing that. If we can get the fuel price down in the major regional centres, that will serve motorists throughout Western Australia and it will indirectly impact on retailers in smaller towns, although that is something over which we do not have control. However, we are not committed in any way to placing a regulatory regime on fuel retailers in smaller country towns.
(2) Given that the price of fuel in Albany is still, on average, 10.8c per litre higher than that in Perth and the freight component is only between 1c and 2c per litre, how can the minister call this trial a success? Mr KOBELKE replied: I thank the member for some notice of this question. (1) This relates to the 2c a litre reduction in the differential between fuel prices in Albany and those in Perth following the introduction of price boards in Albany. Albany was one of the very few regional cities where the use of price boards was not widespread and, therefore, it was targeted for the implementation of this program, which is now flowing through to all major regional centres in Western Australia. The member for Albany was a very strong supporter of that program and urged the Government to implement it. He has reported to me that it appears to have been a success in Albany. This part of the question relates only to the retail margin, which is not a claim we have made; it is a different matter. What we are talking about is the actual price at the pump to motorists, not the constituent parts of that price. It is a reasonable question, but that was not our claim. Through FuelWatch we can now obtain detailed information on the retail price of fuel. Using FuelWatch, we obtained accurate figures as to the retail price of fuel in Albany for the month before price boards were introduced and the month after. That was the evidence on which we based the contention that there had been a 2c reduction in the quite unacceptable margin between the price of fuel in Albany and that in Perth. For most of rural and regional Western Australia that margin is still totally unacceptable, and that refers to the second part of the member’s question. The Albany Advertiser reported a Caltex owner in York Street as saying that in his estimation the display of fuel boards in Albany had reduced the retail price of fuel by 2c a litre. There is ample evidence that signboards have been effective in Albany in reducing the retail price of fuel. As to the constituent parts of the price - whether wholesale or retail - we did not enter into that and I am not addressing that in my answer to this part of the member’s question. (2) This relates to the very high differential between the price country motorists pay for their fuel and that paid in metropolitan Perth. I have said to the House many times already that this matter is on our agenda and we will address it, but until we are absolutely confident that the wholesale price is consistently available, to put in place a retail cap - which we are committed to doing - would simply drive some of those service stations out of business. That is not our intent. We are progressing with this matter. Our forensic auditors are investigating the fuel companies and some prosecutions are pending. We are going to make sure that fuel is available at the wholesale price on a consistent, ongoing basis and then we will move to place a cap on retail centres. The member also indicated some interest as to how this would affect fuel retailers in smaller towns. We do not intend to place regulatory controls on them, such as signboards or a cap, in the foreseeable future. Our whole target has been major regional centres, and we understand that to try to impose a regulatory regime in small country towns where there may be only one service station could simply drive that business out of town, and we have no intention of doing that. If we can get the fuel price down in the major regional centres, that will serve motorists throughout Western Australia and it will indirectly impact on retailers in smaller towns, although that is something over which we do not have control. However, we are not committed in any way to placing a regulatory regime on fuel retailers in smaller country towns.
Mr KOBELKE replied: I thank the member for some notice of this question. (1) This relates to the 2c a litre reduction in the differential between fuel prices in Albany and those in Perth following the introduction of price boards in Albany. Albany was one of the very few regional cities where the use of price boards was not widespread and, therefore, it was targeted for the implementation of this program, which is now flowing through to all major regional centres in Western Australia. The member for Albany was a very strong supporter of that program and urged the Government to implement it. He has reported to me that it appears to have been a success in Albany. This part of the question relates only to the retail margin, which is not a claim we have made; it is a different matter. What we are talking about is the actual price at the pump to motorists, not the constituent parts of that price. It is a reasonable question, but that was not our claim. Through FuelWatch we can now obtain detailed information on the retail price of fuel. Using FuelWatch, we obtained accurate figures as to the retail price of fuel in Albany for the month before price boards were introduced and the month after. That was the evidence on which we based the contention that there had been a 2c reduction in the quite unacceptable margin between the price of fuel in Albany and that in Perth. For most of rural and regional Western Australia that margin is still totally unacceptable, and that refers to the second part of the member’s question. The Albany Advertiser reported a Caltex owner in York Street as saying that in his estimation the display of fuel boards in Albany had reduced the retail price of fuel by 2c a litre. There is ample evidence that signboards have been effective in Albany in reducing the retail price of fuel. As to the constituent parts of the price - whether wholesale or retail - we did not enter into that and I am not addressing that in my answer to this part of the member’s question. (2) This relates to the very high differential between the price country motorists pay for their fuel and that paid in metropolitan Perth. I have said to the House many times already that this matter is on our agenda and we will address it, but until we are absolutely confident that the wholesale price is consistently available, to put in place a retail cap - which we are committed to doing - would simply drive some of those service stations out of business. That is not our intent. We are progressing with this matter. Our forensic auditors are investigating the fuel companies and some prosecutions are pending. We are going to make sure that fuel is available at the wholesale price on a consistent, ongoing basis and then we will move to place a cap on retail centres. The member also indicated some interest as to how this would affect fuel retailers in smaller towns. We do not intend to place regulatory controls on them, such as signboards or a cap, in the foreseeable future. Our whole target has been major regional centres, and we understand that to try to impose a regulatory regime in small country towns where there may be only one service station could simply drive that business out of town, and we have no intention of doing that. If we can get the fuel price down in the major regional centres, that will serve motorists throughout Western Australia and it will indirectly impact on retailers in smaller towns, although that is something over which we do not have control. However, we are not committed in any way to placing a regulatory regime on fuel retailers in smaller country towns.
I thank the member for some notice of this question. (1) This relates to the 2c a litre reduction in the differential between fuel prices in Albany and those in Perth following the introduction of price boards in Albany. Albany was one of the very few regional cities where the use of price boards was not widespread and, therefore, it was targeted for the implementation of this program, which is now flowing through to all major regional centres in Western Australia. The member for Albany was a very strong supporter of that program and urged the Government to implement it. He has reported to me that it appears to have been a success in Albany. This part of the question relates only to the retail margin, which is not a claim we have made; it is a different matter. What we are talking about is the actual price at the pump to motorists, not the constituent parts of that price. It is a reasonable question, but that was not our claim. Through FuelWatch we can now obtain detailed information on the retail price of fuel. Using FuelWatch, we obtained accurate figures as to the retail price of fuel in Albany for the month before price boards were introduced and the month after. That was the evidence on which we based the contention that there had been a 2c reduction in the quite unacceptable margin between the price of fuel in Albany and that in Perth. For most of rural and regional Western Australia that margin is still totally unacceptable, and that refers to the second part of the member’s question. The Albany Advertiser reported a Caltex owner in York Street as saying that in his estimation the display of fuel boards in Albany had reduced the retail price of fuel by 2c a litre. There is ample evidence that signboards have been effective in Albany in reducing the retail price of fuel. As to the constituent parts of the price - whether wholesale or retail - we did not enter into that and I am not addressing that in my answer to this part of the member’s question. (2) This relates to the very high differential between the price country motorists pay for their fuel and that paid in metropolitan Perth. I have said to the House many times already that this matter is on our agenda and we will address it, but until we are absolutely confident that the wholesale price is consistently available, to put in place a retail cap - which we are committed to doing - would simply drive some of those service stations out of business. That is not our intent. We are progressing with this matter. Our forensic auditors are investigating the fuel companies and some prosecutions are pending. We are going to make sure that fuel is available at the wholesale price on a consistent, ongoing basis and then we will move to place a cap on retail centres. The member also indicated some interest as to how this would affect fuel retailers in smaller towns. We do not intend to place regulatory controls on them, such as signboards or a cap, in the foreseeable future. Our whole target has been major regional centres, and we understand that to try to impose a regulatory regime in small country towns where there may be only one service station could simply drive that business out of town, and we have no intention of doing that. If we can get the fuel price down in the major regional centres, that will serve motorists throughout Western Australia and it will indirectly impact on retailers in smaller towns, although that is something over which we do not have control. However, we are not committed in any way to placing a regulatory regime on fuel retailers in smaller country towns.
(1) This relates to the 2c a litre reduction in the differential between fuel prices in Albany and those in Perth following the introduction of price boards in Albany. Albany was one of the very few regional cities where the use of price boards was not widespread and, therefore, it was targeted for the implementation of this program, which is now flowing through to all major regional centres in Western Australia. The member for Albany was a very strong supporter of that program and urged the Government to implement it. He has reported to me that it appears to have been a success in Albany. This part of the question relates only to the retail margin, which is not a claim we have made; it is a different matter. What we are talking about is the actual price at the pump to motorists, not the constituent parts of that price. It is a reasonable question, but that was not our claim. Through FuelWatch we can now obtain detailed information on the retail price of fuel. Using FuelWatch, we obtained accurate figures as to the retail price of fuel in Albany for the month before price boards were introduced and the month after. That was the evidence on which we based the contention that there had been a 2c reduction in the quite unacceptable margin between the price of fuel in Albany and that in Perth. For most of rural and regional Western Australia that margin is still totally unacceptable, and that refers to the second part of the member’s question. The Albany Advertiser reported a Caltex owner in York Street as saying that in his estimation the display of fuel boards in Albany had reduced the retail price of fuel by 2c a litre. There is ample evidence that signboards have been effective in Albany in reducing the retail price of fuel. As to the constituent parts of the price - whether wholesale or retail - we did not enter into that and I am not addressing that in my answer to this part of the member’s question. (2) This relates to the very high differential between the price country motorists pay for their fuel and that paid in metropolitan Perth. I have said to the House many times already that this matter is on our agenda and we will address it, but until we are absolutely confident that the wholesale price is consistently available, to put in place a retail cap - which we are committed to doing - would simply drive some of those service stations out of business. That is not our intent. We are progressing with this matter. Our forensic auditors are investigating the fuel companies and some prosecutions are pending. We are going to make sure that fuel is available at the wholesale price on a consistent, ongoing basis and then we will move to place a cap on retail centres. The member also indicated some interest as to how this would affect fuel retailers in smaller towns. We do not intend to place regulatory controls on them, such as signboards or a cap, in the foreseeable future. Our whole target has been major regional centres, and we understand that to try to impose a regulatory regime in small country towns where there may be only one service station could simply drive that business out of town, and we have no intention of doing that. If we can get the fuel price down in the major regional centres, that will serve motorists throughout Western Australia and it will indirectly impact on retailers in smaller towns, although that is something over which we do not have control. However, we are not committed in any way to placing a regulatory regime on fuel retailers in smaller country towns.
The Albany Advertiser reported a Caltex owner in York Street as saying that in his estimation the display of fuel boards in Albany had reduced the retail price of fuel by 2c a litre. There is ample evidence that signboards have been effective in Albany in reducing the retail price of fuel. As to the constituent parts of the price - whether wholesale or retail - we did not enter into that and I am not addressing that in my answer to this part of the member’s question.
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