Dan Tehan (Wannon, Liberal Party) Share this | Link to this | Hansard source

Australians everywhere have rightfully been relieved at the recent break in the increase in petrol prices over the end of last year and into January. However, in parts of regional Australia these drops in prices have not fully been felt by consumers. At the end of last year, the Minister for Small Business gave powers to the Australian Competition and Consumer Commission to investigate fuel markets by 'deep diving' into regional areas to find irregularities or dysfunction affecting consumers at the bowser. In this announcement, the minister outlined the issue of regional petrol prices. He said:

The new direction provides for the ACCC to produce more timely reports than its current annual fuel market review publication that contains detailed information on the petroleum industry and to target specific aspects of concern for closer examination.

Monitoring reports will now be produced quarterly to be more informative, responsive and able to identify areas of market concern or heightened interest for the community.

In addition, the new direction also empowers the Commission to undertake a ‘deep dive’ into specific markets or aspects of the fuel industry requiring closer and more specific examination. These reviews will target perceived irregularities in the fuel market or market dysfunction with potential detriment to motorists.

In some regional centres that are about the same distance out from our capital cities and the same distance from terminals, there is no great variation in the volume sold but there is a lot of difference in the price that motorists are charged.

On 26 February 2015 the ACCC released the first quarterly report into the Australian petroleum industry for 2015. The report showed a large decrease in petrol prices in the five largest cities in the period from June 2014 to January 2015 consistent with the fall in international prices. However, the fall in international prices has not fully flowed through to regional locations. The report also found that in June 2014 monthly average retail prices of petrol across regional locations in Australia were 5.4c per litre higher than prices in the five largest cities—close to the average for 2013-14. By December 2014 this differential had increased to 17.5c per litre. The differential remained at this level at the end of January. During January this differential increased in some of the 180 regional locations monitored by the ACCC and decreased in others.

On 10 March 2015 the ACCC announced that Darwin would be the first regional location to be studied under the new petrol monitoring arrangements. The aims of the regional market studies are to get to the bottom of why prices are higher in certain regional locations and to identify and explain each component of the prices paid at the bowser. The ACCC will examine petrol markets in at least a further two regional locations by the end of the year. The ACCC will announce the next two regional locations to be selected for a market study over the coming months.

I have here tonight a petition with 2,068 signatures from the people of Hamilton and its surrounds which was presented to the House Standing Committee on Petitions and found to be in order. It draws the House's attention to the disparity in fuel prices between Hamilton and other regions, which leads to motorists in Hamilton and its surrounds paying markedly more for their fuel. The people of Hamilton and the surrounding towns have asked that the House call on the Australian Competition and Consumer Commission to use its new powers to 'deep dive' into the fuel market in south-west Victoria in order to examine any irregularities or market dysfunction which are having a detrimental impact on consumers.

It is with honour and privilege that I present this petition on behalf of my constituents. It is a petition which, given the number of signatures, clearly shows the level of concern in my community for the disparity in prices between city and country areas. I hereby present the petition to the House.

The petition read as follows—

To the Honourable The Speaker and Members of the House of Representatives

This petition of residents of Hamilton and surrounding towns draws to the attention of the House the disparity in fuel prices between Hamilton and other regions, which leads to motorists paying markedly more for their fuel.

We therefore ask the House to call on the Australian Competition and Consumer Commission (ACCC) to use its new powers to "deep dive" into the Hamilton fuel market to examine any perceived irregularities in the fuel market or market dysfunction which are having a detrimental impact on motorists.

from 2,068 citizens

Petition received.