Senator Joyce said today “the more things change, the more they seem to stay the same. This is the case on the latest findings of the ACCC into petrol pricing. Apparently, there is no collusion and if we watch the oil companies a little closer we may get a couple of cents off. That is jolly marvellous and lets all go to Christmas happy that the problem is now solved.

“Well, not this Christmas. Enough is enough. Australians are sick and tied with Governments, especially new ones that promised more, telling them they have nothing to complain about regarding petrol prices. Now consumers are also having their intelligence questioned with statements by the ACCC that the oil industry is just a ‘comfortable oligopoly’ as if everything is ‘normal’ with concentrated markets. There is nothing ‘normal’ about concentrated markets. Consumers lose out where there is a lack of competition.

“What consumers need is a stronger Trade Practices Act. What is needed is the enforcement of the Birdsville Amendment against predatory pricing by the oil majors and the supermarket chains. Consumers want this Government to get serious or go away.

“There is something seriously wrong with the Trade Practices Act. Is this the best the ACCC can do, tell the long suffering consumer to watch the oil companies a little closer and you may get a couple of cents off if you shop around. Consumers need cheaper prices at all service stations. They do not have time to shop around. Let’s have a commitment of more competition through a stronger Trade Practices Act and the enforcement of the Birdsville Amendment. Let’s have a court-backed divestiture power to break up the ‘comfortable oligopoly’.

“The oil companies buy and sell from each other at agreed prices at the terminal gate when they do not have a refinery in the State. What do you call that, clairvoyance? There is only a petrol truck between that arrangement and the apparent free market of the retail level, where due to the bipartisan support of Labor and Liberal for the repeal of the Sites and Franchise Act, the path to total vertical integration is clearly apparent.

“What about the fact that we cannot float competing products into Australia because of the fuel content rules so you can only buy petrol off the incumbents. What about the fact that although diesel is less refined than petrol, it costs more. Why is there such a wide discrepancy between the price we sell LNG to China and the price the oil companies sell LPG to Australian motorists? If there was easy access, surely other players would come into the market. Why are Australian vehicles in Brazil running on up to 85% ethanol, which could be sold at 85 cents a litre, yet here, ethanol is a dirty word.

“Ethanol remains out in the cold because it does bring a more affordable product onto the market and we cannot give Australian motorists that because of a ‘comfortable oligopoly’. All we can be sure of is two things: (i) that the oil lobby is the strongest in Canberra and can ride both sides of the political fence and (ii) motorists no longer have an election period to protect them from the impending spike in fuel prices. There is a third, we are over a barrel and consumers are paying higher petrol prices as a result.”