The Middle East conflict and subsequent impact on the fuel industry is creating some COVID style responses from state and territory governments. In another case, it seems like some vested interests have adopted the motto of ‘let’s not waste a crisis’.
The NSW EPA last Friday released an ethanol options paper which will be subject to a consultation roundtable tomorrow (7 May) and written submissions by 14 May. The first option would be to place 1% of ethanol into 91 unleaded, although there would be no change in signage or branding. For all the impacts this could have on industry and consumers, the EPA estimates that this would increase the NSW fuel supply by a mere 2.5 days per annum.
The second option floated by the EPA is to completely replace 91 with E10. Recognising there could be a lack of supply of ethanol, they state that this could start with 5% ethanal, limit it to the Sydney metropolitan area, or limit this option to retailers that already sell E10.
The EPA in their options paper breezily mention that some infrastructure may need to be upgraded or replaced. The lack of understanding by the EPA of the fuel industry is of great concern. In addition, they seem intent to force on consumers a product that for 20 years they have largely rejected.
ACAPMA will be participating in the roundtable and making a submission putting forward the views of our members.
In Western Australia, as of 1 May, all fuel retailers in Western Australia will be required to report their prices to FuelWatch. Currently, it is estimated that FuelWatch only covers 80% of retail sites, the remaining 20% are generally in regional and remote areas. Fines for not reporting prices on FuelWatch will also be increased from $1,000 to $4,000. The WA Premier stated that “The expansion of the scheme will see mandatory reporting requirements apply to every retailer across WA, adding approximately 200 extra retailers to the FuelWatch system.” ACAPMA has a policy of supporting transparent fuel price reporting.
However, in addition to the above requirement, many retailers have received a notice from the WA Commissioner for Consumer Protection requesting evidence that they had passed on in full the fuel excise cut from 1 April. While acknowledging that the ACCC already has visibility over the pass through of the fuel excise cut, the Commissioner is demanding that retailers ‘open their books’ to government bureaucrats. This is a completely unnecessary overreach of government power. ACAPMA has raised its concerns at the highest level of the Western Australian Government and is awaiting a response to our concerns. We will keep you updated.
On Monday 20 April, the Northern Territory government announced it would be implementing a price cap reporting scheme on Saturday 25 April, with a two day grace period with fines being applied from Monday 27 April. Industry was not consulted at all before this announcement was made.
The scheme is a carbon copy of the Victorian arrangement where retailers are required to publish their fuel price cap by 2pm the day before trading. From that cap, retailers can trade downwards only for 24 hours. The Victorian scheme had a six month transition which was considered rushed, but a seven day transition is beyond the pale. Nevertheless, despite the cost, administrative burden and IT challenges, our retailers complied.
ACAPMA immediately contacted the relevant Minister’s Office when this was first announced. However, the NT government had been so public in making the announcement that they could not reverse out of their public commitment. ACAPMA will continue to monitor the implementation of the scheme and raise any issues with the relevant Minister.
ACAPMA
