What about the price of diesel?
23rd December, 2008
It is time that the Australian Competition and Consumer Commission turned its attention to the retail price of diesel, according to the Leader of The Nationals and Federal Shadow Minister for Transport, Warren Truss.Commenting on the ACCC’s first annual report into unleaded petrol prices, Mr Truss said many motorists will not be convinced by the ACCC’s assessment that unleaded petrol prices were fair. But over the last year the real issue for consumers has been the growing disparity in the price of diesel compared with unleaded petrol.
“Until the last couple of years, diesel has traditionally been substantially cheaper than petrol. Petrol prices are now on the way down, but the gap between petrol and diesel seems to have widened,” Mr Truss said.
“A range of excuses are provided from time to time such as a shortage of suitable crude, demand in the northern hemisphere winter, the economic boom in Asia, and growth in aviation fuel demand. But none of these reasons seem to offer a credible explanation for the huge current discrepancy in pricing.
“While large scale users of diesel in Australia, such as the mining industry and big transport companies are naturally able to purchase diesel at discount prices, local motorists with diesel powered vehicles seem to be bearing the full brunt of the price distortions.”
Mr Truss called for an immediate ACCC investigation into the difference in fuel pricing between petrol and diesel. The inquiry should examine the reasons for the price spread, and whether or not the difference can be justified.
“The ACCC should not just be patting the fuel companies on the back for price reductions for unleaded petrol. They should be asking why isn’t the price of diesel coming down as well.”
