It was confirmed today, in Senate Estimates, that the oil companies only reduced their prices during the January dip in world oil prices after being contacted by the ACCC.
Queensland Nationals Senator Barnaby Joyce said: "This is a clear example of an oligopoly at work and shows their predisposition is to exploit the Australian consumer when the opportunity arises."
"They have the ability, by whatever form, to inherently act in unison to keep prices artificially elevated. The only way this oligopoly can be challenged is through further competition in the retail market.
"There are two main factors inhibiting this; firstly, the demise, supported by Labor, of the ‘Sites and Franchise Act’.
"Secondly, the inability to get a competing product against the oil majors from overseas because of current fuel standards peculiar to Australia in our region. This means we are isolated from competing fuel being imported from South East Asian refineries.
"In addition to this, the oil majors - as can be seen by yesterday's media release from Caltex resisting the two per cent ethanol mandate in NSW - will fight to the death to stop an alternate fuel product being developed in Australia."
Senator Joyce said Caltex's statement about current capacity of ethanol producers in NSW was wrong.
"Manildra has the capacity to produce more than 100 million litres per year of ethanol now and they have the ability to double this in a very short period of time," Senator Joyce said.
“It was mischievous of Caltex to suggest that production capacity in NSW was only 75 million litres because there was only one producer – Manildra.
"Queensland-based CSR is already selling ethanol to NSW and Victoria. For Caltex to suggest that a mandate is unachievable because of alleged lack of supply is ludicrous.
"Caltex's misleading response is further evidence that the oil majors are continuing to run obstruction to the establishment of an environmentally friendly bio-fuels industry in Australia.
"They are not serious about the target they committed to with the Prime Minister in 2005. Last year they were two thirds short of their commitment of between 89 million litres and 124 million litres, having taken up just 25-30 million litres, based on available data.
"The oil majors would rather continue to gouge high profits through their carbon burning products than encourage a cleaner future, less dependent on fossil fuels.
"While the NSW announcement is welcome, a national approach to ethanol mandating rather than a range of different approaches at State level would make more sense.
"We must fervently protect the role of independent fuel suppliers through some new form of legislative process. We must also mandate ethanol to bring a competing fuel product into the market which will also result in excess refining capacity leading to price discounting.
"Our alternative is to rely on our own monitoring process and for the ACCC to be continually on the phone to the oil majors and asking them to play fairly.
"I prefer the first alternative."