AIP welcomes the conclusions of the ACCC Pricing Inquiry, that there is no evidence of price fixing or collusion in the fuel supply industry in Australia and that petrol pricing is largely a result of international factors.
The Executive Director of AIP, Dr John Tilley, said, "AIP and its member companies have consistently stated that the Australian fuel market is highly competitive and Australian consumers clearly benefit from low fuel prices".
Australian fuel prices, pre and post tax, have been low by international comparisons with countries where fuel is also sold in unregulated market economies.
"Australian consumers are getting a fair deal on their petrol contrary to the significant misinformation campaigns by several stakeholder groups", said Dr Tilley.
"AIP welcomes the strong ACCC call for responsible commentary on petrol prices.
"The current structure of the Australian downstream petroleum industry is the result of vigorous competition in the sector which has seen ongoing rationalisation at all levels of the industry," said Dr Tilley.
"Careful consideration of any new policy proposals will be essential if Australia is to continue to enjoy fuel supply security and consumer confidence in the robustness of the supply system.
AIP member companies have made a significant contribution to the ACCC Inquiry. Dr Tilley said, "AIP member companies' active and cooperative participation in this process has sought to provide the ACCC with an in-depth knowledge of the facts to assist the government and community in fully understanding the key market and other factors influencing fuel prices in Australia."
AIP member companies will be carefully considering the wide-ranging ACCC report and will discuss the details with the ACCC and government in due course. An important consideration will be how to meet community expectations while recognising that total industry profit has only been around three cents per litre and the industry has invested the majority of its profits back into necessary refinery, marketing and distribution system upgrades over the last few years.
For further information on the range of factual pricing material and pricing data already provided by AIP to assist the community, see www.aip.com.au.
Dr John Tilley
02 6247 3044