Ben Morton (Tangney, Liberal Party) Share this | Link to this | Hansard source

In my electorate of Tangney a number of concerned constituents have come forward regarding the fuel price in Perth. Australian consumers have always been sensitive to movement in petrol prices, especially when movements can be large and unexplainable. Australia has some of the most expensive petrol in the world. On a like-for-like basis, Australian petroleum statistics indicated in 2017 that our fuel is the seventh dearest amongst 27 of the world's developed countries. In my electorate of Tangney, and in wider metropolitan Perth, there is a consistent petrol price cycle. In some instances, it can lead to significant price rises from Monday, the cheapest day, to Tuesday, the most expensive. These pricing strategies mean that consumers must pay particular attention to the tools we have to ensure we're getting a fair deal.

FuelWatch is one such tool. A service unique to Western Australia, FuelWatch monitors fuel prices in the whole metropolitan area and 80 per cent of regional fuel retailers. While FuelWatch does to some extent empower the consumer to some extent, I emphasise with constituents that it is difficult to understand how, from day to day, seemingly from street to street, there can be so much variation in fuel prices, seemingly from a lack of competition.

I wrote to the Australian Competition and Consumer Commission regarding petrol pricing and received their reply—that price cycles are not evidence of a lack of retail competition. According to their inquiries, including a comprehensive 2017 report, it is up to the consumer to simply buy at the bottom of the cycle to minimise costs. Some of my constituents have spoken of widespread collusion and conspiracy, the sort of anticompetitive behaviour we cannot stand for. However, in WA, this is really a case of parallel pricing occurring where a similar product is sold at prices that are highly visible. Essentially, retail fuel companies can see a competitor's price, making it easier to predict a competitor's price through FuelWatch and minimise their own prices. The fuel market, as a result of FuelWatch, is certainly transparent, perhaps even too transparent. I believe there needs to be further inquiry to understand the full implications of market transparency on fuel prices.

A 2017 paper from the OECD competition committee discussed the impact of transparency measures introduced in Germany. The paper warned that, when there is an increase in transparency in concentrated markets with the same goods, the risk of tactical collusion may also increase. The paper from the OECD notes that in Germany there has been an increase in fuel prices since the introduction of their fuel price transparency scheme in 2013.

I have therefore written to the minister asking him to consider an inquiry into petrol prices to give the Australian public confidence in market transparency and protect consumers from any anticompetitive behaviour. Transparency in markets is only beneficial if it leads to consumers getting a better deal at the checkout and the petrol pump.