MTAA and ASSCA Welcome Petrol Price Inquiry

The Motor Trades Association of Australia (MTAA), and its constituent the Australian Service Station and Convenience Store Association (ASSCSA), welcome the establishment by the Senate of a Petrol Price Inquiry to be undertaken by the Senate Economics Committee.

MTAA and ASSCSA will of course participate fully in this Inquiry because we too have long sought a review of the issues comprehended by the Senate’s Terms of Reference. The Inquiry, coming as it does against the Government’s efforts to repeal the Petroleum Retail Marketing Franchise Act and the Petroleum Retail Marketing Sites Act (the Acts), is timely and welcome.

 Those Acts, which were first passed in 1980, have until recently, when they have been circumvented by some oil companies and grocery retailers, served hitherto to give Australia, through the presence of independents in the retail market, some of the cheapest fuel in the world. Absent the Acts that will no longer be the case and the market will be dominated by the two grocer/oil company alliances which presently hold 67% of the market by volume and there will then be no inhibition on the pricing power of those Companies as independents will disappear from the market as is presently occurring.

 We will tell the Senate Inquiry of that fact and invite it to consider these contemporary market developments as an issue and why prices have become as high as they have and why there are glaring price differences for petrol and other fuels between places and times and dates.

We will vigorously pursue these arguments in the way of submissions to the Senate Inquiry and through that reveal what has been occurring in the market through changes to its structure and the behaviours which have been occurring. We wholeheartedly welcome what the Senate has done.

In the meantime, the Government must not proceed with its bills to repeal the two Petroleum Acts. To do so would be folly given we are now to learn of what the Senate will report.

For further information please contact Mr Michael Delaney, Executive Director of MTAA, on 02 6273 4333