The Minister acknowledges the impact of spot price unavailability on independent fuel retailers. While no supply complaints have been received, concerns exist regarding retail pricing margins above wholesale costs.

AnsweredQoN 569Legislative Assembly
Asked
14 November 2001
Portfolio
Consumer and Employment Protection

QuestionView source ↗

FUEL PRICES, PRICING REGULATIONS
Does the minister recognise that the lack of availability of the spot price affects the small independent retailers in Western Australia? Mr KOBELKE

AnswerView source ↗

It does. However, no-one has come forward to make a complaint that they could not get fuel. People are getting fuel at below the maximum wholesale price. One example given to me recently - in confidence, so I cannot quote the source - was of a service station that was buying below the maximum wholesale price. It was not on a spot price, and might have been under a contract to supply fuel. The service station was retailing at 12c a litre above the purchase price. This was in an area not far removed from central Perth. That is the sort of issue we face at the retail level as well as at the wholesale level.
Mr KOBELKE replied: It does. However, no-one has come forward to make a complaint that they could not get fuel. People are getting fuel at below the maximum wholesale price. One example given to me recently - in confidence, so I cannot quote the source - was of a service station that was buying below the maximum wholesale price. It was not on a spot price, and might have been under a contract to supply fuel. The service station was retailing at 12c a litre above the purchase price. This was in an area not far removed from central Perth. That is the sort of issue we face at the retail level as well as at the wholesale level.
It does. However, no-one has come forward to make a complaint that they could not get fuel. People are getting fuel at below the maximum wholesale price. One example given to me recently - in confidence, so I cannot quote the source - was of a service station that was buying below the maximum wholesale price. It was not on a spot price, and might have been under a contract to supply fuel. The service station was retailing at 12c a litre above the purchase price. This was in an area not far removed from central Perth. That is the sort of issue we face at the retail level as well as at the wholesale level.

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