31/5/02
Consumer Protection Minister John Kobelke today released a discussion paper to help determine the model to be used to introduce retail caps on regional fuel prices.
"Release of the discussion paper for fuel caps in major regional areas is part of the Gallop Government's commitment to reducing fuel prices for country motorists," Mr Kobelke said.
"The Government is moving to bring controls into the petrol market, because higher fuel prices in country Western Australia, compared with metropolitan prices, are unjustified.
"The discussion paper is a major step in addressing this inequality."
The discussion paper outlines the purpose of retail price caps, provides background information on this issue and presents supporting evidence indicating the need for regulation of petroleum markets in regional areas.
The Government is examining the introduction of retail price capping in seven major regional centres - Albany, Bunbury, Busselton, Esperance, Geraldton, Kalgoorlie/Boulder and Port Hedland/South Hedland.
Mr Kobelke said a retail fuel price cap in major regional centres was one solution to the price differential between city and regional areas.
But he warned capping fuel prices was a complex issue. It would bring benefits for consumers, but also some ramifications for industry.
"This discussion paper encourages debate with industry stakeholders and the public and will help to determine the feasibility, practicalities and impacts of introducing price caps," the Minister said.
The Department of Consumer and Employment Protection will be conducting seminars to discuss the issue with the community and industry stakeholders during June and July in major regional centres.
Copies of the discussion paper can be downloaded from the FuelWatch website at http://www.fuelwatch.wa.gov.au or requests for copies can be made by calling 1300 30 40 54.
Written submissions should be received by July 31 and sent to:
Retail Price Caps
Petroleum Products Pricing Unit
Department of Consumer and Employment Protection
Locked Bag 14
Cloisters Square
PERTH WA 6850.
Submissions can also be lodged electronically before July 31 by completing the online submission form at http://www.fuelwatch.wa.gov.au
Submissions will form the basis of a report to be presented to the Minister for Consumer and Employment Protection for his consideration.
Minister's office: 9222 9211
