Fuelwatch scheme rejected
November 13, 2008 by Matt Brogan
The legislation to see the introduction of a nation wide Fuelwatch scheme has been defeated in the Senate today in a move welcomed by the VACC.
The Fuelwatch scheme which many claim was flawed from the outset, would not actually have saved retail purchasers (motorists) money, with many actually believing the scheme would have resulted in higher net prices.
Mr Purchase of the VACC said of the scheme “In August, VACC made its submission to the Senate Economics Committee, on behalf of independent service station owners in Victoria and Tasmania, stating it was ‘opposed to regulation of prices in the retail fuel market that will handcuff retailers and will not introduce greater transparency to the wholesale supply of fuels’.
“Fuelwatch was flawed because it targeted retail fuel prices. The only way to ensure cheaper fuel prices is to allow independent service station operators fair and equitable access to competitive fuel supply at the terminal gate. The wholesale market is all-but wholly in the hands of the big oil companies.
“VACC believes the proposal by the Service Station Association (SSA) to force the oil majors to share port facilities with competing importers will introduce greater competition at the wholes level.
“VACC recommends the ACCC and the new Petrol Commissioner, Mr Joe Dimasi, turn their attention to the operation of the wholesale fuel market, the buy/sell arrangements and the relationship between the oil majors and their supermarket partners.”
Though talks in the Senate did not completely rule out re-introduction of a similar scheme further down the track, for now at least common sense has prevailed.
CarAdvice are keen to hear your thoughts. Do you believe the FuelWatch scheme could have worked?
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So true, yet that doesn’t seem to stop the WA politicians padding themselfs on the back!
As someone on the radio said today, “you watch when the price goes back up Mr charisma will say but the opposition stopped our fuel check system!!”
I’m glad they stopped the limitation to free trade.
Im western australian and having fuel watch here is fantastic. You will find the vast majority of western australians approve of it. You can easily search for the cheapest fuel in your area and know that any time that day you will be assured that price wont go up before u visit that petrol station. As usual the liberals are looking after big business.
I am a blue collar worker on less than average wage. what be the the type of person against this system
James, I’m a west Aussie too.
But I reckon the fuel watch scheme is overrated.
Don’t get me wrong, I love the fact that we can search for the cheapest fuel prize online (Even though I rarely do).
The locking in of a petrol price for 24 hours doesn’t really make it any cheaper, only acts to stabilize price fluctuations….
The fuel watch scheme is an utter waste of time and our money. There are already on line sites giving the price of petrol. Too lock in the price of petrol 24 hours ahead cannot lower prices, quite the opposite. I say to the Senate and the House of Representatives, drop this idea forever. Australia needs responsible government for a change.
Is James of “western australia” a real person or just a labour stooge?
Fantastic!
That FuelWatch scam would have cost me sooo much it’s rediculous. It stiffles competition, stiffles the discount cycle and panders to the BIG corporates.
James, it is exectly the opposite that the Liberals have done. The big grocery chains and oil companies wanted Fuelwatch, because it assists monopolies.
The Liberals are the ones looking after the “working families”. KRudd is scroowing us over.
“Watching prices does NOT make them cheaper”