Premier puts ACCC on red alert over fuel subsidy

Joint Statement:

Premier and Minister for the Arts
The Honourable Anna Bligh

Minister for Tourism and Fair Trading
The Honourable Peter Lawlor
28/06/2009
 
Premier puts ACCC on red alert over fuel subsidy
 
Premier Anna Bligh has warned the ACCC to be on red alert and said a Queensland team of investigators have been monitoring petrol prices in the run up to the cessation of the fuel subsidy on Wednesday.

The fuel subsidy will cease from midnight 30 June and the price of fuel can be expected to rise on Wednesday 1 July.

Ms Bligh said she had spoken personally to the Australian Competition and Consumer Commission Chairman Graeme Samuel this week.

"I have concerns that the oil companies will seek to profiteer in the wake of the scheme's cessation and have asked Mr Samuel to put his staff on red alert," said the Premier.

Ms Bligh said State Government investigators have been monitoring petrol prices across the state in the lead up to the post-subsidy period.

"We will continue to do that in the coming months as intelligence is gathered from industry and other bodies on any abnormal price rises," she warned.

"I will be making arrangements for this data to be given directly to the ACCC to use in any prosecutions they may launch where inappropriate pricing or illegal activity is identified.

"We will do everything in our power to make sure that the ACCC has the information they need to prevent these companies taking advantage of Queensland families in already difficult economic times.

"The Pincus report into the fuel subsidy last year said that well over $100 million out of the subsidy every year was not going to the benefit of the Queensland consumers," she said.

"What the report showed was that, on average, consumers were only getting 6 cents benefit from the subsidy - any rise above that and companies have got some explaining to do.

"That means the oil companies were effectively pick pocketing money from Queenslanders using the fuel subsidy as their shield.

"I am determined that we are not going to let the big oil companies mug the consumer in broad daylight now that the shield is gone."

Minister for Fair Trading Peter Lawlor also said fuel companies and service stations should be warned that profiteering removal of the fuel subsidy on 1 July will not be tolerated.

"I'm taking this opportunity to place service station operators on notice that they should not try and use the abolition of the fuel subsidy to jack up prices," Mr Lawlor said.

"Unfortunately the rise will occur about the same time within the normal weekly price cycle that service station operators tend to raise the price of fuel anyway.

"However, I am warning operators that I will not hesitate to name and shame any operator who takes advantage of the abolition to try and make further profit, particularly in these tough economic times.

"I urge consumers to shop around for the best prices, take advantage of the weekly price cycle where it operates, and buy fuel early in the week when prices tend to be lowest."

Mr Lawlor said he urged any consumer who believed service stations operators were inappropriately increasing the price of fuel to lodge a complaint with the Office of Fair Trading.

"While I appreciate there are a large number of factors which can influence the price of fuel, including the price of crude oil and exchange rates, service station operators need to be fair in their dealings with the public," he said.

If consumers believe fuel operators are ripping them off they can lodge a complaint by calling the Office of Fair Trading hotline number (07) 3115 1783 or by logging on to www.fairtrading.qld.gov.au.