The VACC says it welcomes the cautionary comments by the Minister for Resources and Energy, Mr Martin Ferguson, on the
The VACC says it welcomes the cautionary comments by the Minister for Resources and Energy, Mr Martin Ferguson, on the FuelWatch Scheme.
“As VACC commented when FuelWatch was announced, it is our belief that the FuelWatch system will not produce the savings motorists may be hoping for and, at best, will have a marginal effect on pump prices,” says VACC Executive Director, David Purchase.
“We believe that the cost to set up and monitor the FuelWatch scheme, reported to be $21million, outweighs any marginal benefit to motorists.
“Regrettably, with oil at record highs on the international market, motorists can expect to keep delivering record profits to the oil companies, and record excise and GST revenues to Federal and State coffers, regardless of FuelWatch.
Purchase says the VACC believes the real task for the ACCC, and the best opportunity to return competition to the petrol retail market, which is now nearly wholly in the hands of the oil majors and their supermarket partners, is to have transparency and competition at the wholesale level.
“VACC wants to see a fair and reasonable wholesale price (TGP) available to independent service station operators. Fair competition at wholesale, will lead to greater competition at the pump and therefore lower prices for the consumer.
“VACC will continue to hold a watching brief on FuelWatch. The greater task for the Federal Government and ACCC is to ensure a level playing field for petrol retailers at the wholesale level. Then, and only then, can motorists be assured they are buying petrol at a competitive and fair price,” Purchase says.