MPs push for fuel relief

The RAC has contradicted State watchdog Fuelwatch, saying petrol retailers in the region have seized the chance to profit from an international slump in prices.

The comments were echoed this week by Warren-Blackwood MLA Terry Redman, who said South West politicians had also rallied in a bipartisan call for fuel operators to pass savings on to motorists.

In a letter signed by members including Labor’s Bunbury MLA Don Punch, Liberal Vasse MLA Libby Mettam, and Bunbury-based MLC Adele Farina, the disparity between Perth and regional prices was highlighted.

“Demand for fuel may well have fallen, creating excess supply and downward pressure on prices, but we do not see that in the South West,” the members said.

“In fact, the only conclusion that can be drawn from current price levels is that the South West, and possibly regional WA, is offsetting your company’s pricing in Perth.

“There is growing anger in our communities about the cost of fuel,” the letter said.

“There are many in our community whose reliance on vehicles means fuel is an essential part of the household budget.”

RAC’s WA vehicles and fuels manager Alex Forrest said fuel companies should “immediately reduce the significant margins they charge on fuel”.

“Big reductions in the international oil price flowed on to reductions in fuel prices at the wholesale level in WA but much of this was not passed on to motorists at the pumps,” Mr Forrest said.

“While many in our community are struggling through one of the toughest times of their lives, fuel companies have been beefing up their profit margins on fuel, in some cases by upwards of 100 per cent.

“This was especially evident in regional areas, where pump prices remained high for weeks despite big drops in wholesale pricing.”

While Albany had 99¢-a-litre fuel this week, prices in the Capes have reduced only slightly.

RAC data in the week from February 24 showed average retail margins in Bunbury and Busselton increased 27¢ and 26¢ a litre respectively. Data for Augusta-Margaret River was not available but pre-discount fuel prices remained around $1.27 a litre yesterday.

Fuelwatch repeated previous advice that fuel prices took longer to drop in regional WA and average local prices were down 13¢ since March 1. “Petrol prices in the Augusta-Margaret River region continue to track downwards,” a spokeswoman said.

“Movements in the international benchmark tend to take a few weeks longer to affect regional WA compared to metropolitan Perth because country sites take longer to turn over their supply and restock at new wholesale prices,” she said.

“Perth also operates on a weekly petrol-price cycle so comparing the highest regional price to Perth’s cheapest price can be misleading.”

Augusta-Margaret River Shire president Ian Earl said it was difficult to know what affected fuel prices at a time when people were driving less.