FOR IMMEDIATE USE
APRIL 16, 2008
FUELWATCH A CIRCUS: BETTER FOR THE ACCC TO TACKLE
COMPETITION AT THE WHOLESALE LEVEL
VACC believes that, on balance, the FuelWatch system announced by the Federal
Government and the ACCC, will not produce the savings motorists may be hoping for
and, at best, will only ever have a marginal effect on motorists’ pockets.
“While we support action by the ACCC to bring greater transparency to the market,
and do not doubt the sincerity of the Federal Government and the ACCC in
announcing the system, VACC does not believe that FuelWatch is the right action,”
VACC Executive Director, David Purchase, said.
“We believe that the cost to set up and monitor the FuelWatch scheme, reported to
be $21million, outweighs any marginal benefit to motorists.
“Regrettably, with oil at record highs on the international market, motorists can
expect to keep delivering record profits to the oil companies, and record excise and
GST revenues to Federal and State coffers, regardless of FuelWatch.
“In VACC’s view, FuelWatch is a bit of a circus. The real task for the ACCC, and the
best opportunity to return competition to the petrol retail market, which is now nearly
wholly in the hands of the oil majors and their supermarket partners, is to have
transparency and competition at the wholesale level.
“VACC wants to see a fair and reasonable wholesale price (TGP) available to
independent service station operators. Fair competition at wholesale, will lead to
greater competition at the pump and therefore lower prices for the consumer.
“Nevertheless, with the resources of the ACCC behind FuelWatch, and its ongoing
close attention to the behaviours of the participants, we trust that the ACCC will
ensure that any ‘dodges’ devised by the oil companies to work the system to their
advantage will be exposed and cut off.
“VACC will hold a watching brief on FuelWatch. The greater task for the Federal
Government and ACCC is to ensure a level playing field for petrol retailers at the
wholesale level. Then, and only then, can motorists be assured they are buying
petrol at a competitive and fair price,” Mr Purchase said.
Ends
NEWS 
