❓ Hon Robin Chapple questions the government's commitment to maintaining WA's fuel quality standards, specifically regarding MTBE, sulfur, and benzene levels. Minister Griffiths acknowledges the issue, highlighting the BP refinery's monopoly and potential cost implications, but avoids a direct commitment, indicating ongoing consultation.
AnsweredQoN 948Legislative Council
QuestionView source ↗
FUEL ADDITIVES, WA STANDARDS
With regard to the fuel additive methyl tertiary butyl ether - MTBE - and Western Australian fuel quality standards established under the previous Government - (1) Will the minister give a commitment that this Government will not permit any relaxation of fuel standards to allow the additive to be introduced into Western Australia? (2) If not, why not? (3) Will the minister give a commitment that the Government will not permit any relaxation of fuel standards to allow increased levels of sulfur or benzene? (4) If not, why not? (5) If the answer to part (1) and/or (3) is yes, will the minister state the rationale for reducing fuel quality standards in Western Australia? Hon N.D. GRIFFITHS
With regard to the fuel additive methyl tertiary butyl ether - MTBE - and Western Australian fuel quality standards established under the previous Government - (1) Will the minister give a commitment that this Government will not permit any relaxation of fuel standards to allow the additive to be introduced into Western Australia? (2) If not, why not? (3) Will the minister give a commitment that the Government will not permit any relaxation of fuel standards to allow increased levels of sulfur or benzene? (4) If not, why not? (5) If the answer to part (1) and/or (3) is yes, will the minister state the rationale for reducing fuel quality standards in Western Australia? Hon N.D. GRIFFITHS
AnswerView source ↗
I thank the member for some notice of this question. (1)-(5) Western Australia’s current fuel specification is unique and it has effectively created a monopoly for the BP refinery in Kwinana. It is currently the only refinery in the region that can provide fuel that meets the specification at a commercially viable price. BP has announced plans to progressively withdraw from the refinery exchange arrangements with other major oil companies and move to a contract purchasing arrangement. BP’s written advice to at least one other major Australian refiner-marketer is that it wishes to move to arrangements that will allow flexibility on short notice to access markets that better remunerate the investment made in the refineries. The monopoly created by the fuel specification gives BP a stranglehold on the market. Potential problems include fuel shortages, as BP increases the volume of fuel exports to the United States, and increased prices because of a combination of the quality premium being placed on fuel that meets the Western Australian specification and the lack of alternative supplies. The Minister for Consumer and Employment Protection has received independent expert advice that if fuel is to be imported into Perth from overseas to meet Western Australia’s current fuel specifications, it could be at a premium of between just under 5c a litre to more than 9c a litre at the bowser. The minister wishes to address this problem in a way that takes account of valid environmental concerns, while still providing a viable, cost-effective fuel supply in Western Australia. Consultation with key stakeholders is continuing.
(1) Will the minister give a commitment that this Government will not permit any relaxation of fuel standards to allow the additive to be introduced into Western Australia? (2) If not, why not? (3) Will the minister give a commitment that the Government will not permit any relaxation of fuel standards to allow increased levels of sulfur or benzene? (4) If not, why not? (5) If the answer to part (1) and/or (3) is yes, will the minister state the rationale for reducing fuel quality standards in Western Australia? Hon N.D. GRIFFITHS replied: I thank the member for some notice of this question. (1)-(5) Western Australia’s current fuel specification is unique and it has effectively created a monopoly for the BP refinery in Kwinana. It is currently the only refinery in the region that can provide fuel that meets the specification at a commercially viable price. BP has announced plans to progressively withdraw from the refinery exchange arrangements with other major oil companies and move to a contract purchasing arrangement. BP’s written advice to at least one other major Australian refiner-marketer is that it wishes to move to arrangements that will allow flexibility on short notice to access markets that better remunerate the investment made in the refineries. The monopoly created by the fuel specification gives BP a stranglehold on the market. Potential problems include fuel shortages, as BP increases the volume of fuel exports to the United States, and increased prices because of a combination of the quality premium being placed on fuel that meets the Western Australian specification and the lack of alternative supplies. The Minister for Consumer and Employment Protection has received independent expert advice that if fuel is to be imported into Perth from overseas to meet Western Australia’s current fuel specifications, it could be at a premium of between just under 5c a litre to more than 9c a litre at the bowser. The minister wishes to address this problem in a way that takes account of valid environmental concerns, while still providing a viable, cost-effective fuel supply in Western Australia. Consultation with key stakeholders is continuing.
(2) If not, why not? (3) Will the minister give a commitment that the Government will not permit any relaxation of fuel standards to allow increased levels of sulfur or benzene? (4) If not, why not? (5) If the answer to part (1) and/or (3) is yes, will the minister state the rationale for reducing fuel quality standards in Western Australia? Hon N.D. GRIFFITHS replied: I thank the member for some notice of this question. (1)-(5) Western Australia’s current fuel specification is unique and it has effectively created a monopoly for the BP refinery in Kwinana. It is currently the only refinery in the region that can provide fuel that meets the specification at a commercially viable price. BP has announced plans to progressively withdraw from the refinery exchange arrangements with other major oil companies and move to a contract purchasing arrangement. BP’s written advice to at least one other major Australian refiner-marketer is that it wishes to move to arrangements that will allow flexibility on short notice to access markets that better remunerate the investment made in the refineries. The monopoly created by the fuel specification gives BP a stranglehold on the market. Potential problems include fuel shortages, as BP increases the volume of fuel exports to the United States, and increased prices because of a combination of the quality premium being placed on fuel that meets the Western Australian specification and the lack of alternative supplies. The Minister for Consumer and Employment Protection has received independent expert advice that if fuel is to be imported into Perth from overseas to meet Western Australia’s current fuel specifications, it could be at a premium of between just under 5c a litre to more than 9c a litre at the bowser. The minister wishes to address this problem in a way that takes account of valid environmental concerns, while still providing a viable, cost-effective fuel supply in Western Australia. Consultation with key stakeholders is continuing.
(3) Will the minister give a commitment that the Government will not permit any relaxation of fuel standards to allow increased levels of sulfur or benzene? (4) If not, why not? (5) If the answer to part (1) and/or (3) is yes, will the minister state the rationale for reducing fuel quality standards in Western Australia? Hon N.D. GRIFFITHS replied: I thank the member for some notice of this question. (1)-(5) Western Australia’s current fuel specification is unique and it has effectively created a monopoly for the BP refinery in Kwinana. It is currently the only refinery in the region that can provide fuel that meets the specification at a commercially viable price. BP has announced plans to progressively withdraw from the refinery exchange arrangements with other major oil companies and move to a contract purchasing arrangement. BP’s written advice to at least one other major Australian refiner-marketer is that it wishes to move to arrangements that will allow flexibility on short notice to access markets that better remunerate the investment made in the refineries. The monopoly created by the fuel specification gives BP a stranglehold on the market. Potential problems include fuel shortages, as BP increases the volume of fuel exports to the United States, and increased prices because of a combination of the quality premium being placed on fuel that meets the Western Australian specification and the lack of alternative supplies. The Minister for Consumer and Employment Protection has received independent expert advice that if fuel is to be imported into Perth from overseas to meet Western Australia’s current fuel specifications, it could be at a premium of between just under 5c a litre to more than 9c a litre at the bowser. The minister wishes to address this problem in a way that takes account of valid environmental concerns, while still providing a viable, cost-effective fuel supply in Western Australia. Consultation with key stakeholders is continuing.
(4) If not, why not? (5) If the answer to part (1) and/or (3) is yes, will the minister state the rationale for reducing fuel quality standards in Western Australia? Hon N.D. GRIFFITHS replied: I thank the member for some notice of this question. (1)-(5) Western Australia’s current fuel specification is unique and it has effectively created a monopoly for the BP refinery in Kwinana. It is currently the only refinery in the region that can provide fuel that meets the specification at a commercially viable price. BP has announced plans to progressively withdraw from the refinery exchange arrangements with other major oil companies and move to a contract purchasing arrangement. BP’s written advice to at least one other major Australian refiner-marketer is that it wishes to move to arrangements that will allow flexibility on short notice to access markets that better remunerate the investment made in the refineries. The monopoly created by the fuel specification gives BP a stranglehold on the market. Potential problems include fuel shortages, as BP increases the volume of fuel exports to the United States, and increased prices because of a combination of the quality premium being placed on fuel that meets the Western Australian specification and the lack of alternative supplies. The Minister for Consumer and Employment Protection has received independent expert advice that if fuel is to be imported into Perth from overseas to meet Western Australia’s current fuel specifications, it could be at a premium of between just under 5c a litre to more than 9c a litre at the bowser. The minister wishes to address this problem in a way that takes account of valid environmental concerns, while still providing a viable, cost-effective fuel supply in Western Australia. Consultation with key stakeholders is continuing.
(5) If the answer to part (1) and/or (3) is yes, will the minister state the rationale for reducing fuel quality standards in Western Australia? Hon N.D. GRIFFITHS replied: I thank the member for some notice of this question. (1)-(5) Western Australia’s current fuel specification is unique and it has effectively created a monopoly for the BP refinery in Kwinana. It is currently the only refinery in the region that can provide fuel that meets the specification at a commercially viable price. BP has announced plans to progressively withdraw from the refinery exchange arrangements with other major oil companies and move to a contract purchasing arrangement. BP’s written advice to at least one other major Australian refiner-marketer is that it wishes to move to arrangements that will allow flexibility on short notice to access markets that better remunerate the investment made in the refineries. The monopoly created by the fuel specification gives BP a stranglehold on the market. Potential problems include fuel shortages, as BP increases the volume of fuel exports to the United States, and increased prices because of a combination of the quality premium being placed on fuel that meets the Western Australian specification and the lack of alternative supplies. The Minister for Consumer and Employment Protection has received independent expert advice that if fuel is to be imported into Perth from overseas to meet Western Australia’s current fuel specifications, it could be at a premium of between just under 5c a litre to more than 9c a litre at the bowser. The minister wishes to address this problem in a way that takes account of valid environmental concerns, while still providing a viable, cost-effective fuel supply in Western Australia. Consultation with key stakeholders is continuing.
Hon N.D. GRIFFITHS replied: I thank the member for some notice of this question. (1)-(5) Western Australia’s current fuel specification is unique and it has effectively created a monopoly for the BP refinery in Kwinana. It is currently the only refinery in the region that can provide fuel that meets the specification at a commercially viable price. BP has announced plans to progressively withdraw from the refinery exchange arrangements with other major oil companies and move to a contract purchasing arrangement. BP’s written advice to at least one other major Australian refiner-marketer is that it wishes to move to arrangements that will allow flexibility on short notice to access markets that better remunerate the investment made in the refineries. The monopoly created by the fuel specification gives BP a stranglehold on the market. Potential problems include fuel shortages, as BP increases the volume of fuel exports to the United States, and increased prices because of a combination of the quality premium being placed on fuel that meets the Western Australian specification and the lack of alternative supplies. The Minister for Consumer and Employment Protection has received independent expert advice that if fuel is to be imported into Perth from overseas to meet Western Australia’s current fuel specifications, it could be at a premium of between just under 5c a litre to more than 9c a litre at the bowser. The minister wishes to address this problem in a way that takes account of valid environmental concerns, while still providing a viable, cost-effective fuel supply in Western Australia. Consultation with key stakeholders is continuing.
I thank the member for some notice of this question. (1)-(5) Western Australia’s current fuel specification is unique and it has effectively created a monopoly for the BP refinery in Kwinana. It is currently the only refinery in the region that can provide fuel that meets the specification at a commercially viable price. BP has announced plans to progressively withdraw from the refinery exchange arrangements with other major oil companies and move to a contract purchasing arrangement. BP’s written advice to at least one other major Australian refiner-marketer is that it wishes to move to arrangements that will allow flexibility on short notice to access markets that better remunerate the investment made in the refineries. The monopoly created by the fuel specification gives BP a stranglehold on the market. Potential problems include fuel shortages, as BP increases the volume of fuel exports to the United States, and increased prices because of a combination of the quality premium being placed on fuel that meets the Western Australian specification and the lack of alternative supplies. The Minister for Consumer and Employment Protection has received independent expert advice that if fuel is to be imported into Perth from overseas to meet Western Australia’s current fuel specifications, it could be at a premium of between just under 5c a litre to more than 9c a litre at the bowser. The minister wishes to address this problem in a way that takes account of valid environmental concerns, while still providing a viable, cost-effective fuel supply in Western Australia. Consultation with key stakeholders is continuing.
(1)-(5) Western Australia’s current fuel specification is unique and it has effectively created a monopoly for the BP refinery in Kwinana. It is currently the only refinery in the region that can provide fuel that meets the specification at a commercially viable price. BP has announced plans to progressively withdraw from the refinery exchange arrangements with other major oil companies and move to a contract purchasing arrangement. BP’s written advice to at least one other major Australian refiner-marketer is that it wishes to move to arrangements that will allow flexibility on short notice to access markets that better remunerate the investment made in the refineries. The monopoly created by the fuel specification gives BP a stranglehold on the market. Potential problems include fuel shortages, as BP increases the volume of fuel exports to the United States, and increased prices because of a combination of the quality premium being placed on fuel that meets the Western Australian specification and the lack of alternative supplies. The Minister for Consumer and Employment Protection has received independent expert advice that if fuel is to be imported into Perth from overseas to meet Western Australia’s current fuel specifications, it could be at a premium of between just under 5c a litre to more than 9c a litre at the bowser. The minister wishes to address this problem in a way that takes account of valid environmental concerns, while still providing a viable, cost-effective fuel supply in Western Australia. Consultation with key stakeholders is continuing.
The minister wishes to address this problem in a way that takes account of valid environmental concerns, while still providing a viable, cost-effective fuel supply in Western Australia. Consultation with key stakeholders is continuing.
(1) Will the minister give a commitment that this Government will not permit any relaxation of fuel standards to allow the additive to be introduced into Western Australia? (2) If not, why not? (3) Will the minister give a commitment that the Government will not permit any relaxation of fuel standards to allow increased levels of sulfur or benzene? (4) If not, why not? (5) If the answer to part (1) and/or (3) is yes, will the minister state the rationale for reducing fuel quality standards in Western Australia? Hon N.D. GRIFFITHS replied: I thank the member for some notice of this question. (1)-(5) Western Australia’s current fuel specification is unique and it has effectively created a monopoly for the BP refinery in Kwinana. It is currently the only refinery in the region that can provide fuel that meets the specification at a commercially viable price. BP has announced plans to progressively withdraw from the refinery exchange arrangements with other major oil companies and move to a contract purchasing arrangement. BP’s written advice to at least one other major Australian refiner-marketer is that it wishes to move to arrangements that will allow flexibility on short notice to access markets that better remunerate the investment made in the refineries. The monopoly created by the fuel specification gives BP a stranglehold on the market. Potential problems include fuel shortages, as BP increases the volume of fuel exports to the United States, and increased prices because of a combination of the quality premium being placed on fuel that meets the Western Australian specification and the lack of alternative supplies. The Minister for Consumer and Employment Protection has received independent expert advice that if fuel is to be imported into Perth from overseas to meet Western Australia’s current fuel specifications, it could be at a premium of between just under 5c a litre to more than 9c a litre at the bowser. The minister wishes to address this problem in a way that takes account of valid environmental concerns, while still providing a viable, cost-effective fuel supply in Western Australia. Consultation with key stakeholders is continuing.
(2) If not, why not? (3) Will the minister give a commitment that the Government will not permit any relaxation of fuel standards to allow increased levels of sulfur or benzene? (4) If not, why not? (5) If the answer to part (1) and/or (3) is yes, will the minister state the rationale for reducing fuel quality standards in Western Australia? Hon N.D. GRIFFITHS replied: I thank the member for some notice of this question. (1)-(5) Western Australia’s current fuel specification is unique and it has effectively created a monopoly for the BP refinery in Kwinana. It is currently the only refinery in the region that can provide fuel that meets the specification at a commercially viable price. BP has announced plans to progressively withdraw from the refinery exchange arrangements with other major oil companies and move to a contract purchasing arrangement. BP’s written advice to at least one other major Australian refiner-marketer is that it wishes to move to arrangements that will allow flexibility on short notice to access markets that better remunerate the investment made in the refineries. The monopoly created by the fuel specification gives BP a stranglehold on the market. Potential problems include fuel shortages, as BP increases the volume of fuel exports to the United States, and increased prices because of a combination of the quality premium being placed on fuel that meets the Western Australian specification and the lack of alternative supplies. The Minister for Consumer and Employment Protection has received independent expert advice that if fuel is to be imported into Perth from overseas to meet Western Australia’s current fuel specifications, it could be at a premium of between just under 5c a litre to more than 9c a litre at the bowser. The minister wishes to address this problem in a way that takes account of valid environmental concerns, while still providing a viable, cost-effective fuel supply in Western Australia. Consultation with key stakeholders is continuing.
(3) Will the minister give a commitment that the Government will not permit any relaxation of fuel standards to allow increased levels of sulfur or benzene? (4) If not, why not? (5) If the answer to part (1) and/or (3) is yes, will the minister state the rationale for reducing fuel quality standards in Western Australia? Hon N.D. GRIFFITHS replied: I thank the member for some notice of this question. (1)-(5) Western Australia’s current fuel specification is unique and it has effectively created a monopoly for the BP refinery in Kwinana. It is currently the only refinery in the region that can provide fuel that meets the specification at a commercially viable price. BP has announced plans to progressively withdraw from the refinery exchange arrangements with other major oil companies and move to a contract purchasing arrangement. BP’s written advice to at least one other major Australian refiner-marketer is that it wishes to move to arrangements that will allow flexibility on short notice to access markets that better remunerate the investment made in the refineries. The monopoly created by the fuel specification gives BP a stranglehold on the market. Potential problems include fuel shortages, as BP increases the volume of fuel exports to the United States, and increased prices because of a combination of the quality premium being placed on fuel that meets the Western Australian specification and the lack of alternative supplies. The Minister for Consumer and Employment Protection has received independent expert advice that if fuel is to be imported into Perth from overseas to meet Western Australia’s current fuel specifications, it could be at a premium of between just under 5c a litre to more than 9c a litre at the bowser. The minister wishes to address this problem in a way that takes account of valid environmental concerns, while still providing a viable, cost-effective fuel supply in Western Australia. Consultation with key stakeholders is continuing.
(4) If not, why not? (5) If the answer to part (1) and/or (3) is yes, will the minister state the rationale for reducing fuel quality standards in Western Australia? Hon N.D. GRIFFITHS replied: I thank the member for some notice of this question. (1)-(5) Western Australia’s current fuel specification is unique and it has effectively created a monopoly for the BP refinery in Kwinana. It is currently the only refinery in the region that can provide fuel that meets the specification at a commercially viable price. BP has announced plans to progressively withdraw from the refinery exchange arrangements with other major oil companies and move to a contract purchasing arrangement. BP’s written advice to at least one other major Australian refiner-marketer is that it wishes to move to arrangements that will allow flexibility on short notice to access markets that better remunerate the investment made in the refineries. The monopoly created by the fuel specification gives BP a stranglehold on the market. Potential problems include fuel shortages, as BP increases the volume of fuel exports to the United States, and increased prices because of a combination of the quality premium being placed on fuel that meets the Western Australian specification and the lack of alternative supplies. The Minister for Consumer and Employment Protection has received independent expert advice that if fuel is to be imported into Perth from overseas to meet Western Australia’s current fuel specifications, it could be at a premium of between just under 5c a litre to more than 9c a litre at the bowser. The minister wishes to address this problem in a way that takes account of valid environmental concerns, while still providing a viable, cost-effective fuel supply in Western Australia. Consultation with key stakeholders is continuing.
(5) If the answer to part (1) and/or (3) is yes, will the minister state the rationale for reducing fuel quality standards in Western Australia? Hon N.D. GRIFFITHS replied: I thank the member for some notice of this question. (1)-(5) Western Australia’s current fuel specification is unique and it has effectively created a monopoly for the BP refinery in Kwinana. It is currently the only refinery in the region that can provide fuel that meets the specification at a commercially viable price. BP has announced plans to progressively withdraw from the refinery exchange arrangements with other major oil companies and move to a contract purchasing arrangement. BP’s written advice to at least one other major Australian refiner-marketer is that it wishes to move to arrangements that will allow flexibility on short notice to access markets that better remunerate the investment made in the refineries. The monopoly created by the fuel specification gives BP a stranglehold on the market. Potential problems include fuel shortages, as BP increases the volume of fuel exports to the United States, and increased prices because of a combination of the quality premium being placed on fuel that meets the Western Australian specification and the lack of alternative supplies. The Minister for Consumer and Employment Protection has received independent expert advice that if fuel is to be imported into Perth from overseas to meet Western Australia’s current fuel specifications, it could be at a premium of between just under 5c a litre to more than 9c a litre at the bowser. The minister wishes to address this problem in a way that takes account of valid environmental concerns, while still providing a viable, cost-effective fuel supply in Western Australia. Consultation with key stakeholders is continuing.
Hon N.D. GRIFFITHS replied: I thank the member for some notice of this question. (1)-(5) Western Australia’s current fuel specification is unique and it has effectively created a monopoly for the BP refinery in Kwinana. It is currently the only refinery in the region that can provide fuel that meets the specification at a commercially viable price. BP has announced plans to progressively withdraw from the refinery exchange arrangements with other major oil companies and move to a contract purchasing arrangement. BP’s written advice to at least one other major Australian refiner-marketer is that it wishes to move to arrangements that will allow flexibility on short notice to access markets that better remunerate the investment made in the refineries. The monopoly created by the fuel specification gives BP a stranglehold on the market. Potential problems include fuel shortages, as BP increases the volume of fuel exports to the United States, and increased prices because of a combination of the quality premium being placed on fuel that meets the Western Australian specification and the lack of alternative supplies. The Minister for Consumer and Employment Protection has received independent expert advice that if fuel is to be imported into Perth from overseas to meet Western Australia’s current fuel specifications, it could be at a premium of between just under 5c a litre to more than 9c a litre at the bowser. The minister wishes to address this problem in a way that takes account of valid environmental concerns, while still providing a viable, cost-effective fuel supply in Western Australia. Consultation with key stakeholders is continuing.
I thank the member for some notice of this question. (1)-(5) Western Australia’s current fuel specification is unique and it has effectively created a monopoly for the BP refinery in Kwinana. It is currently the only refinery in the region that can provide fuel that meets the specification at a commercially viable price. BP has announced plans to progressively withdraw from the refinery exchange arrangements with other major oil companies and move to a contract purchasing arrangement. BP’s written advice to at least one other major Australian refiner-marketer is that it wishes to move to arrangements that will allow flexibility on short notice to access markets that better remunerate the investment made in the refineries. The monopoly created by the fuel specification gives BP a stranglehold on the market. Potential problems include fuel shortages, as BP increases the volume of fuel exports to the United States, and increased prices because of a combination of the quality premium being placed on fuel that meets the Western Australian specification and the lack of alternative supplies. The Minister for Consumer and Employment Protection has received independent expert advice that if fuel is to be imported into Perth from overseas to meet Western Australia’s current fuel specifications, it could be at a premium of between just under 5c a litre to more than 9c a litre at the bowser. The minister wishes to address this problem in a way that takes account of valid environmental concerns, while still providing a viable, cost-effective fuel supply in Western Australia. Consultation with key stakeholders is continuing.
(1)-(5) Western Australia’s current fuel specification is unique and it has effectively created a monopoly for the BP refinery in Kwinana. It is currently the only refinery in the region that can provide fuel that meets the specification at a commercially viable price. BP has announced plans to progressively withdraw from the refinery exchange arrangements with other major oil companies and move to a contract purchasing arrangement. BP’s written advice to at least one other major Australian refiner-marketer is that it wishes to move to arrangements that will allow flexibility on short notice to access markets that better remunerate the investment made in the refineries. The monopoly created by the fuel specification gives BP a stranglehold on the market. Potential problems include fuel shortages, as BP increases the volume of fuel exports to the United States, and increased prices because of a combination of the quality premium being placed on fuel that meets the Western Australian specification and the lack of alternative supplies. The Minister for Consumer and Employment Protection has received independent expert advice that if fuel is to be imported into Perth from overseas to meet Western Australia’s current fuel specifications, it could be at a premium of between just under 5c a litre to more than 9c a litre at the bowser. The minister wishes to address this problem in a way that takes account of valid environmental concerns, while still providing a viable, cost-effective fuel supply in Western Australia. Consultation with key stakeholders is continuing.
The minister wishes to address this problem in a way that takes account of valid environmental concerns, while still providing a viable, cost-effective fuel supply in Western Australia. Consultation with key stakeholders is continuing.
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