Tackling the fuel price differential between city and country has become an important priority for Federal Minister for Regional Services, Territories and Local Government, Wilson Tuckey. Minister Tuckey is promoting measures to achieve greater transparency in petrol pricing.
He points to the recent announcement by Shell Australia of a move to a fairer, simpler and more transparent terminal gate price for petrol and distillate as a significant step in this direction. The new arrangements are open to retailers or large consumers that meet the relevant environmental, health and safety requirements.
“The main advantage of terminal gate pricing is that it brings a level of transparency to the fuel market that hasn’t previously existed,” Minister Tuckey said. “Motorists can now compare the price they pay at the pump with the petrol price at the terminal gate. This information can help motorists to get to the bottom of the difference between city and country fuel prices, and to make their retailers more accountable or to highlight potentially uncompetitive behaviour by fuel distributors.
“Opening up of access to cheaper terminal gate prices, and taking into account that fuel can be road transported for approximately 1/2 a cent a litre per 100 kilometres and the assistance to rural and remote fuel retailers available under the Federal Government’s Fuel Sales Grants Scheme, means that consumers should benefit from substantially lower fuel prices than would otherwise apply.”
Minister Tuckey wrote to Mayors with details of the new arrangements and encouraged Councils to use available terminal gate pricing information to ensure access to competitively priced fuel in rural and remote areas.
“Local Government is taking an increasing leadership role in community and economic development throughout Australia,” the Minister said. “Councils can use the information provided by Shell to make clear to local fuel suppliers that they will be closely monitoring changes in the terminal gate price of fuel and observing whether these changes flow through to local retail prices.”
The Shell Australia company now publishes its daily terminal gate prices for all capital cities. This information and Shell’s wholesale and retail pricing arrangements can be found at www.shell.com.au.
