Rudd's policy regarding petrol is beginning to show. After the election, Rudd suggested some inflationary means for dealing with petrol fluctuation in price at the bowser. One suggestion ws to limit price change from day to day. Another involves publishing price data the day before. Yet another is to task the ACCC to do what it does anyway, and call it different.
So, now it is Christmas Eve, and petrol companies are accused of gouging for not discounting mid week .. possibly as they will be penalized should they dare.
Further, the Australian dollar, relative to the US dollar, has fallen from .90 to 0.85, making imports more expensive.
Maybe Rudd can give away a few hundred million dollars to the Middle East and pray for a miracle, or has he done that already?
Monday, December 24, 2007
ALP Policy Driving Up Petrol Cost
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Big Oil's highway robbery
By Heath Aston and Brad Watts
PETROL companies have been accused of price gouging after the consumer watchdog issued a "please explain" over rising Christmas prices.
With average unleaded prices remaining above $1.40 a litre in Sydney yesterday, the Australian Consumer and Competition Commission (ACCC) has demanded justification from the bosses of oil giants Caltex, Shell, Mobil, BP, as well as supermarket empires Woolworths and Coles.
An emboldened ACCC chairman Graeme Samuel has been given the task of "actively monitoring" prices by the Rudd Government.
He noted a "recent significant divergence of the price of unleaded petrol in Australia relative to international price movements".
It has been 12 months since Mr Samuel last accused big oil of taking advantage of drivers - and motoring groups were quick to go on the attack.
NRMA President Alan Evans said it "beggared belief" that petrol companies were raising prices during the peak of the family holiday season.
"It never ceases to amaze me. Could they be more stupid - who knows what these characters can do," he said.
Mr Evans claimed there was "no reason" for the latest price increase as crude oil had not increased and there was easing demand in the US.
The Australian Automobile Association (AAA) executive director Mike Harris said the oil companies were firmly on notice and the ACCC should not hesitate in issuing fines.
"If they can't justify prices, he (Mr Samuel) will have no alternative (other than) to take action," Mr Harris said. "It's a shaming exercise, if they know they're (certain outlets) ripping people off, drivers will go somewhere else, we'll encourage them to do so."
Independent fuel market analyst Geoff Trotter of FUELtrac said it was clear that the ACCC was more prepared to tackle the oil industry over petrol prices than in the past.
"It seems that Mr Samuel is firing a warning shot across their bows because what's happening in the market now is nothing like the divergence we saw back in January and May," he said.
"He is basically saying 'guys it's a new regime now, we're putting you on notice and you'd better not try anything'."
Any such threat is not hollow, with the recent petrol price inquiry granting greater powers to the ACCC, covering all levels of the supply chain.
The report demanded the ACCC report to government every year on pricing and appoint a petrol commissioner with powers.
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