The Nationals’ Senator for Queensland, Barnaby Joyce, is cautious about an inquiry into fuel, as he has seen it all before.

“It is welcoming to see another fuel inquiry but, from what can be read thus far, the inquiry has already started to avoid the obvious.

“Corruption of the price of fuel is due to the over centralisation of fuel retailers and continued pressure on independents to exit the market. The passage of the Petroleum Retail Legislation Repeal Bill 2006, supported by Labor, gave open slather to major retailers and major oil companies. This allows these companies to control up to 100% of the market while previously the major oil companies had been restricted to 5% of sites in the market. This shows where Labor’s true belief lies on this subject.

“Similarly, the repeal of the ‘Bio-diesel – fuel tax credits and fuel grant entitlements’, supported by Labor, also re-entrenched the major oil company’s positions in the market and helped destroy the capacity of a competing bio-renewable product from a competing source.

“The major oil companies sell to each other at an agreed wholesale price at the terminal gate so the acknowledged collusion at the terminal gate is only a fuel truck away from an agreement at the retail site.

“Prior to the terminal gate, the major oil companies control all mechanisms of production, all the way back to the oil well. The price at the terminal gate really just reflects the price at which they are buying from themselves.

“What has to occur is for an alternate product, which competes with oil based fuel and comes from a from a different supply source, to come into the market.

“Ethanol can do this and will deliver great wealth to Queenslanders involved in its production but, you can bet your life, the inquiry will not suggest this.

“The major oil companies have also managed to ring-road Australia from import competition by changes in the Sulphur Content laws. You cannot float fuel in from South East Asia, you can only buy fuel from Australian refineries and guess who owns them?

“I hope this inquiry is not implicitly designed to do two things; make all the motorists feel good that you are trying to “do something” while, with a wink and a nod, letting the big oil companies know there is no intention to change the show.

“It will be interesting to see if this inquiry:

A. Proposes measures to stop vertical integration in major oil companies;
B. Proposes the mandate of ethanol which must come from independent sources; and
C. Allows the importation of fuel from South East Asian refineries.” Senator Joyce said.