Three cent LPG price rise criticised

Consumer Affairs Minister Yvonne Henderson says LPG suppliers and retailers appear to have jumped the gun with a three cent price rise.

Mrs Henderson has written to the Prices Surveillance Authority to complain about the rise.

"Suppliers and retailers of LPG in Western Australia appear to have pre-empted a price rise which had not been expected to come into effect till February 1," Mrs Henderson said today.

"This pre-emptive price increase seems to have been made in pursuit of windfall profits.  It is considered unacceptable and counter-productive to consumer interests.

"I have asked Professor Allan Fels, chairperson of the PSA, to arrange for an examination of the situation, and to take, where warranted, the strongest possible action."

Mrs Henderson said that Australian wholesale prices for LPG were triggered predominantly by movements in the Saudi Government selling price for the product.

"The Saudi price rose on January 1 and Australian suppliers and dealers were not expected to reflect that rise from February 1 by lifting prices at all levels by an estimated three cents per litre.

"WA suppliers and dealers have already raised their prices, in some instances to above 37 cents per litre.

"I understand the taxi industry in WA is concerned about this rise, and I look forward to the PSA's response to my request for strong action."