INVESTIGATION NEEDED INTO TASMANIAN FUEL PRICES

TASMANIANS should pay similar prices for their fuel to interstate motorists whose costs are significantly lower, says Federal Lyons MP Eric Hutchinson.

Mr Hutchinson said today that there was no reason why the price of fuel in Tasmania was on average 12 cents higher last financial year than the national average price.

This was at a time when the national average had already been recorded as the third highest average price on record in real times.

Mr Hutchinson has joined the Tasmanian campaign calling for an Australian Competition and Consumer Commission (ACCC) investigation into possible anti-competitive behaviour in the state’s wholesale and retail fuel markets.

“We need to know whether there is evidence of collusive behaviour or anti-competitive behaviour in the wholesale or retail market markets of Tasmania,’’ Mr Hutchinson said.

Mr Hutchinson has written to the ACCC seeking the review which he believes is now possible following new powers for the Commission announced late last year by Federal Small Business Minister Bruce Billson.

These will enable the Commission to monitor and investigate fuel prices and companies.

Mr Billson said that the new “deep dive” powers will allow the Commission to look at specific markets such as regional markets and take on further investigations if anti-competitive conduct is revealed.

The latest Monitoring of the Australian Petroleum Industry Report revealed that the national average in the 12 months until June 30 last year was 150.6 cents per litre, the third highest average price on record.

Tasmania’s average for the same period was 162 cents per litre or 12 cents higher.

Mr Hutchinson said that Tasmania had few independent petrol retailers still in business to drive competition.

“Most service stations are owned by supermarket chains or are fuel company-owned sites,’’ he said.

Fuel companies say that price differentiation is because of the cost of freight between Tasmania and interstate.

“But I am unconvinced that freight costs alone could contribute to such a price difference,’’ Mr Hutchinson said.

The ACCC’s new powers mean that the commission can look at things like freight costs, volume and different margins for the first time, he said.
Federal Lyons MP Eric Hutchinson