Palaszczuk Government to tackle fuel prices

The Palaszczuk Government has announced a two-year trial of fuel pricing monitoring to take effect in Queensland as soon as possible.

A working group with industry stakeholders, including the RACQ, will be established to oversee the implementation of the fuel pricing monitoring system.

“We know Queensland motorists are rightly concerned about high fuel prices,’’ Energy Minister Dr Anthony Lynham said today.

“While the primary responsibility for fuel pricing remains with the Federal Government and ACCC, the Palaszczuk Government is prepared to do whatever it can to assist Queensland motorists.’’

Dr Lynham said the Government had studied reports from Griffith University and the RACQ on fuel price monitoring.

“While the reports provide differing views, we have determined that a two-year trial of fuel pricing monitoring should take effect in Queensland as soon as possible.

“I would like to thank RACQ, Griffith University and industry representatives for the constructive input they have provided.’’

Dr Lynham said the two-year trial would ensure that more current data is available to motorists and will not disadvantage small independent retailers.

“All fuel retailers will be required to collate and publish their latest prices online, on their own websites and their own apps, within 15 minutes of any change.

 “The system will be required to have in-built safeguards against retailers’ price fixing and not inflict unnecessary red tape.

“We have very real concerns about the LNP proposal. Their proposal, which has only surfaced of late after years of inactivity, including when they were in Government, is an expensive, airy-fairy scheme based on limited information.

“Our proposal is supported by a Griffith University study of the petrol prices monitoring schemes in NSW and the Northern Territory.

“Despite a $20 million price tag for the NSW scheme, the study reports a very limited impact in metropolitan Sydney, no impact in regional New South Wales and an actual increase in the price of fuel in Darwin.

“For Metropolitan Queensland, the report says: ‘a similar scheme implemented in Brisbane may have a less significant downward impact on ULP retail prices compared to the observed impact in Sydney.’

“In regional Queensland, the study says: ‘results for NSW and regional Northern Territory suggest that such a scheme will have either negative or upward impact on the average monthly retail ULP prices’.’’

Dr Lynham said the study said what the Government has been saying all along - that the key to lowering the price of fuel is increasing competition.

“It is crucial though that the Federal Government plays the primary role. We cannot do this alone – a fact conveniently overlooked by the LNP.

“A streamlined national approach is necessary.

“A federal excise of 38 cents per litre is a significant percentage of the price of petrol which could be addressed as soon as next week in the Federal Budget.

Dr Lynham said the Palaszczuk Government would continue to examine options of how we can increase competition in the fuel market and ensure that motorists are not ripped off by the big players in the petroleum industry.

“We are prepared to stand up for Queensland motorists. It is time the Federal Government did their bit too.’’

Media enquiries: David Potter 0428411 617