Question regarding the Minister's intention to control LPG prices under the Petroleum Products Pricing Act, given concerns about market competitiveness. The Minister defends the government's position, citing an ACCC report and the complexities of the international fuel market.

AnsweredQoN 492Legislative Assembly
Asked
13 September 2005
Portfolio
Consumer and Employment Protection

QuestionView source ↗

I have a supplementary question. The minister has just conceded that it is not a competitive market. Does he still intend using his powers under the Petroleum Products Pricing Act to control liquid petroleum gas prices? Mr J.C. KOBELKE

AnswerView source ↗

The Australian Competition and Consumer Commission conducted a detailed study into autogas and the retailing of gas in Western Australia. The government was not happy with the first report that it put out. The government urged the commission to look at the issue more keenly. The commission came to the conclusion that there was a competitive market in Western Australia. As I have indicated, I believe our market could be more competitive, and we will do what we can to achieve that competitive market. However, fixing the price is not likely to create a competitive market. As the member is well aware, some time ago we spoke to people across regional Western Australia about whether the retail price of fuel should be capped. The overwhelming view from regional Western Australia was that we should not do that; consequently, we did not proceed. Therefore, new circumstances would need to be presented to us as to why we should go down that road with gas. Mr D.F. Barron-Sullivan : How high will you let the price go before you do something about it? Mr J.C. KOBELKE : The interjection indicates clearly that the member is not dealing with the realities. We do not let the price go anywhere. The fact is there is a competitive market. We would like to make it more competitive. There is an international market for fuel, whether it be gas or petrol. We need to make sure that we can compete in that marketplace. As the member is most probably aware, a year or two ago BP Refinery (Kwinana) Pty Ltd, which is one of the most, if not the most, efficient refineries in Australia, was exporting considerable volumes to the United States. We are in an international marketplace. We are not in a position to determine whether the price goes up or down. Western Australia holds the record, through FuelWatch, for giving motorists the best deal anywhere in Australia. Month after month the price of petrol in Perth has been lower than that in Brisbane, Sydney and Melbourne, if we do not take into account the subsidies in place in both Brisbane and Melbourne.
Mr J.C. KOBELKE replied: The Australian Competition and Consumer Commission conducted a detailed study into autogas and the retailing of gas in Western Australia. The government was not happy with the first report that it put out. The government urged the commission to look at the issue more keenly. The commission came to the conclusion that there was a competitive market in Western Australia. As I have indicated, I believe our market could be more competitive, and we will do what we can to achieve that competitive market. However, fixing the price is not likely to create a competitive market. As the member is well aware, some time ago we spoke to people across regional Western Australia about whether the retail price of fuel should be capped. The overwhelming view from regional Western Australia was that we should not do that; consequently, we did not proceed. Therefore, new circumstances would need to be presented to us as to why we should go down that road with gas. Mr D.F. Barron-Sullivan : How high will you let the price go before you do something about it? Mr J.C. KOBELKE : The interjection indicates clearly that the member is not dealing with the realities. We do not let the price go anywhere. The fact is there is a competitive market. We would like to make it more competitive. There is an international market for fuel, whether it be gas or petrol. We need to make sure that we can compete in that marketplace. As the member is most probably aware, a year or two ago BP Refinery (Kwinana) Pty Ltd, which is one of the most, if not the most, efficient refineries in Australia, was exporting considerable volumes to the United States. We are in an international marketplace. We are not in a position to determine whether the price goes up or down. Western Australia holds the record, through FuelWatch, for giving motorists the best deal anywhere in Australia. Month after month the price of petrol in Perth has been lower than that in Brisbane, Sydney and Melbourne, if we do not take into account the subsidies in place in both Brisbane and Melbourne.
The Australian Competition and Consumer Commission conducted a detailed study into autogas and the retailing of gas in Western Australia. The government was not happy with the first report that it put out. The government urged the commission to look at the issue more keenly. The commission came to the conclusion that there was a competitive market in Western Australia. As I have indicated, I believe our market could be more competitive, and we will do what we can to achieve that competitive market. However, fixing the price is not likely to create a competitive market. As the member is well aware, some time ago we spoke to people across regional Western Australia about whether the retail price of fuel should be capped. The overwhelming view from regional Western Australia was that we should not do that; consequently, we did not proceed. Therefore, new circumstances would need to be presented to us as to why we should go down that road with gas. Mr D.F. Barron-Sullivan : How high will you let the price go before you do something about it? Mr J.C. KOBELKE : The interjection indicates clearly that the member is not dealing with the realities. We do not let the price go anywhere. The fact is there is a competitive market. We would like to make it more competitive. There is an international market for fuel, whether it be gas or petrol. We need to make sure that we can compete in that marketplace. As the member is most probably aware, a year or two ago BP Refinery (Kwinana) Pty Ltd, which is one of the most, if not the most, efficient refineries in Australia, was exporting considerable volumes to the United States. We are in an international marketplace. We are not in a position to determine whether the price goes up or down. Western Australia holds the record, through FuelWatch, for giving motorists the best deal anywhere in Australia. Month after month the price of petrol in Perth has been lower than that in Brisbane, Sydney and Melbourne, if we do not take into account the subsidies in place in both Brisbane and Melbourne.
Mr D.F. Barron-Sullivan : How high will you let the price go before you do something about it? Mr J.C. KOBELKE : The interjection indicates clearly that the member is not dealing with the realities. We do not let the price go anywhere. The fact is there is a competitive market. We would like to make it more competitive. There is an international market for fuel, whether it be gas or petrol. We need to make sure that we can compete in that marketplace. As the member is most probably aware, a year or two ago BP Refinery (Kwinana) Pty Ltd, which is one of the most, if not the most, efficient refineries in Australia, was exporting considerable volumes to the United States. We are in an international marketplace. We are not in a position to determine whether the price goes up or down. Western Australia holds the record, through FuelWatch, for giving motorists the best deal anywhere in Australia. Month after month the price of petrol in Perth has been lower than that in Brisbane, Sydney and Melbourne, if we do not take into account the subsidies in place in both Brisbane and Melbourne.
Mr J.C. KOBELKE : The interjection indicates clearly that the member is not dealing with the realities. We do not let the price go anywhere. The fact is there is a competitive market. We would like to make it more competitive. There is an international market for fuel, whether it be gas or petrol. We need to make sure that we can compete in that marketplace. As the member is most probably aware, a year or two ago BP Refinery (Kwinana) Pty Ltd, which is one of the most, if not the most, efficient refineries in Australia, was exporting considerable volumes to the United States. We are in an international marketplace. We are not in a position to determine whether the price goes up or down. Western Australia holds the record, through FuelWatch, for giving motorists the best deal anywhere in Australia. Month after month the price of petrol in Perth has been lower than that in Brisbane, Sydney and Melbourne, if we do not take into account the subsidies in place in both Brisbane and Melbourne.

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