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VACC calls for FuelWatch to be dumped

Under the pump: The FuelWatch architect is leaving before the scheme starts.

• What is green?

'Flawed' government fuel price scheme comes under pressure as commissioner resigns

5 August 2008

By TERRY MARTIN and MARTON PETTENDY

THE Victorian Automobile Chamber of Commerce (VACC) has called for the federal government’s proposed national FuelWatch scheme to be scrapped following the resignation last week of Australia’s first petrol commissioner Pat Walker.

The architect of the high-profile FuelWatch program, Mr Walker announced that he would quit his position in two months’ time, before the scheme starts, due to personal reasons.

As a result, the scheme has again come under fire from the VACC because of its focus on the retail, rather than wholesale, end of the market.

“From our experience, Mr Walker was sincere and genuine in his attempt to tackle the fuel pricing issue,” said VACC executive director David Purchase. “However, the attempt to implement an Australia-wide Fuelwatch scheme, based on the Western Australian model, was flawed from the outset as the focus was fixed at the retail level.

Left: VACC executive director David Purchase.

“VACC has repeatedly identified to government that the real issue of transparency in petrol pricing, and in anti-competitive behaviour by the fuel majors, is at the wholesale level.

“The only way to ensure there is competition in the market is through a transparent and fair Terminal Gate Price (TGP) for independent service station operators, who are currently disadvantaged when buying wholesale supplies.

“VACC urges the government to take this opportunity to abandon the proposed national Fuelwatch scheme. We remain willing to assist the ACCC and government in any future discussions concerning petrol prices,” he said.

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