❓ Mr Barron-Sullivan questions the Minister for Consumer and Employment Protection about rising autogas prices in Perth compared to previous years and Melbourne. The Minister acknowledges the issue, citing infrastructure costs and market size, and suggests a government subsidy aims to address the problem.
AnsweredQoN 491Legislative Assembly
QuestionView source ↗
(1) As the price of petrol spirals upwards and more motorists consider using liquid petroleum autogas as a cheaper alternative, will the minister explain why today’s average price of autogas in Perth is 21 per cent higher than for the same month last year and 41 per cent higher than the average for September 2003? (2) Why is the price fluctuating like this? Mr J.C. KOBELKE
AnswerView source ↗
(1)-(2) I am pleased that the member has such confidence in my ability to understand the details of the marketplace in Western Australia and to give him details on those figures. Unfortunately, I would be able to provide more detailed figures on the question if he had given me some notice of it, which he did not. I have concerns that autogas in Western Australia does not appear to have as competitive a market as the government would like, particularly compared with a larger market such as Melbourne. Prices in Perth are generally higher than those in Melbourne. Members would be aware that the infrastructure costs of establishing autogas are quite high. If a low volume of gas is sold through a particular outlet, the cost is factored into each litre that is sold to meet the overheads. With a larger market, that particular extra cost is not necessarily added to the cost of the gas. That is one of the reasons the cost is higher in Perth than in Melbourne. However, the government provides a subsidy to encourage drivers to convert to gas. If that means that the volume of gas sold through the outlets is increased as more people convert to gas, that will help to bring down costs. I am happy to provide a more detailed answer if the member gives me notice of the question.
(2) Why is the price fluctuating like this? Mr J.C. KOBELKE replied: (1)-(2) I am pleased that the member has such confidence in my ability to understand the details of the marketplace in Western Australia and to give him details on those figures. Unfortunately, I would be able to provide more detailed figures on the question if he had given me some notice of it, which he did not. I have concerns that autogas in Western Australia does not appear to have as competitive a market as the government would like, particularly compared with a larger market such as Melbourne. Prices in Perth are generally higher than those in Melbourne. Members would be aware that the infrastructure costs of establishing autogas are quite high. If a low volume of gas is sold through a particular outlet, the cost is factored into each litre that is sold to meet the overheads. With a larger market, that particular extra cost is not necessarily added to the cost of the gas. That is one of the reasons the cost is higher in Perth than in Melbourne. However, the government provides a subsidy to encourage drivers to convert to gas. If that means that the volume of gas sold through the outlets is increased as more people convert to gas, that will help to bring down costs. I am happy to provide a more detailed answer if the member gives me notice of the question.
Mr J.C. KOBELKE replied: (1)-(2) I am pleased that the member has such confidence in my ability to understand the details of the marketplace in Western Australia and to give him details on those figures. Unfortunately, I would be able to provide more detailed figures on the question if he had given me some notice of it, which he did not. I have concerns that autogas in Western Australia does not appear to have as competitive a market as the government would like, particularly compared with a larger market such as Melbourne. Prices in Perth are generally higher than those in Melbourne. Members would be aware that the infrastructure costs of establishing autogas are quite high. If a low volume of gas is sold through a particular outlet, the cost is factored into each litre that is sold to meet the overheads. With a larger market, that particular extra cost is not necessarily added to the cost of the gas. That is one of the reasons the cost is higher in Perth than in Melbourne. However, the government provides a subsidy to encourage drivers to convert to gas. If that means that the volume of gas sold through the outlets is increased as more people convert to gas, that will help to bring down costs. I am happy to provide a more detailed answer if the member gives me notice of the question.
(1)-(2) I am pleased that the member has such confidence in my ability to understand the details of the marketplace in Western Australia and to give him details on those figures. Unfortunately, I would be able to provide more detailed figures on the question if he had given me some notice of it, which he did not. I have concerns that autogas in Western Australia does not appear to have as competitive a market as the government would like, particularly compared with a larger market such as Melbourne. Prices in Perth are generally higher than those in Melbourne. Members would be aware that the infrastructure costs of establishing autogas are quite high. If a low volume of gas is sold through a particular outlet, the cost is factored into each litre that is sold to meet the overheads. With a larger market, that particular extra cost is not necessarily added to the cost of the gas. That is one of the reasons the cost is higher in Perth than in Melbourne. However, the government provides a subsidy to encourage drivers to convert to gas. If that means that the volume of gas sold through the outlets is increased as more people convert to gas, that will help to bring down costs. I am happy to provide a more detailed answer if the member gives me notice of the question.
(2) Why is the price fluctuating like this? Mr J.C. KOBELKE replied: (1)-(2) I am pleased that the member has such confidence in my ability to understand the details of the marketplace in Western Australia and to give him details on those figures. Unfortunately, I would be able to provide more detailed figures on the question if he had given me some notice of it, which he did not. I have concerns that autogas in Western Australia does not appear to have as competitive a market as the government would like, particularly compared with a larger market such as Melbourne. Prices in Perth are generally higher than those in Melbourne. Members would be aware that the infrastructure costs of establishing autogas are quite high. If a low volume of gas is sold through a particular outlet, the cost is factored into each litre that is sold to meet the overheads. With a larger market, that particular extra cost is not necessarily added to the cost of the gas. That is one of the reasons the cost is higher in Perth than in Melbourne. However, the government provides a subsidy to encourage drivers to convert to gas. If that means that the volume of gas sold through the outlets is increased as more people convert to gas, that will help to bring down costs. I am happy to provide a more detailed answer if the member gives me notice of the question.
Mr J.C. KOBELKE replied: (1)-(2) I am pleased that the member has such confidence in my ability to understand the details of the marketplace in Western Australia and to give him details on those figures. Unfortunately, I would be able to provide more detailed figures on the question if he had given me some notice of it, which he did not. I have concerns that autogas in Western Australia does not appear to have as competitive a market as the government would like, particularly compared with a larger market such as Melbourne. Prices in Perth are generally higher than those in Melbourne. Members would be aware that the infrastructure costs of establishing autogas are quite high. If a low volume of gas is sold through a particular outlet, the cost is factored into each litre that is sold to meet the overheads. With a larger market, that particular extra cost is not necessarily added to the cost of the gas. That is one of the reasons the cost is higher in Perth than in Melbourne. However, the government provides a subsidy to encourage drivers to convert to gas. If that means that the volume of gas sold through the outlets is increased as more people convert to gas, that will help to bring down costs. I am happy to provide a more detailed answer if the member gives me notice of the question.
(1)-(2) I am pleased that the member has such confidence in my ability to understand the details of the marketplace in Western Australia and to give him details on those figures. Unfortunately, I would be able to provide more detailed figures on the question if he had given me some notice of it, which he did not. I have concerns that autogas in Western Australia does not appear to have as competitive a market as the government would like, particularly compared with a larger market such as Melbourne. Prices in Perth are generally higher than those in Melbourne. Members would be aware that the infrastructure costs of establishing autogas are quite high. If a low volume of gas is sold through a particular outlet, the cost is factored into each litre that is sold to meet the overheads. With a larger market, that particular extra cost is not necessarily added to the cost of the gas. That is one of the reasons the cost is higher in Perth than in Melbourne. However, the government provides a subsidy to encourage drivers to convert to gas. If that means that the volume of gas sold through the outlets is increased as more people convert to gas, that will help to bring down costs. I am happy to provide a more detailed answer if the member gives me notice of the question.
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