Rowan Ramsey (Grey, Liberal Party) Share this | Link to this | Hansard source

I take this opportunity to inform the House of the absolute malfunction of fuel pricing in regional South Australia and, in particular, the regional city of Whyalla, and the apparent impotency or complete lack of concern shown by the ACCC. Over the last three months, petrol in Whyalla has been as much as 10c a litre dearer than in Adelaide and, even more disturbingly, diesel has been 20c a litre dearer. Given that the cost of freight from Adelaide to Whyalla is only about 3c a litre—and we are talking here about one of the biggest regional markets in South Australia—it is apparent that the competitive market is failing.

I raised the issue with the ACCC and just today received a response. The commission uses information from a report from last year to explain that the main factors for higher fuel prices in country areas are smaller populations, greater distances from terminals, less competition and lower volumes. It points out that, because country sites refuel less often than city outlets, price drops take longer to work their way through the system. I refute all of these arguments. Whyalla has the second- or third-largest regional population in the state and, as a result, outlets fill frequently. It is only 380 kilometres from Adelaide and 270 kilometres from Port Lincoln—both fuel terminals—equating to a freight differential of between 2c and 3c per litre, and there are at least seven outlets in the city. Nearby centres have significantly cheaper prices than Whyalla—in fact, Port Augusta, just 80 kilometres up the road, and nearer to Adelaide, is averaging diesel prices 15c a litre lower. For the ACCC to tell Whyalla citizens, through me, that a 20c premium for diesel is all part of the natural cycle is totally unacceptable. Either the ACCC has no teeth or it doesn’t care. (Time expired)