Senate votes against Fuelwatch

Fuelwatch was a controversial proposal even when retail petrol prices were as high as $1.70 a litre. With the price of oil dropping back to below $60 per barrel, there's even less call for a national scheme to ensure competitive petrol pricing at a retail level.

The Victorian Automobile Chamber of Commerce (VACC) has approved the Senate overturning the legislation that would have led to the scheme being adopted nationwide.

Representing, among others, fuel retailers in Victoria, the VACC was never in favour of the Rudd Government's proposal (more here).

"This is a victory for common sense," announced VACC Executive Director, David Purchase.

"The national Fuelwatch scheme was flawed from the outset. It would not have saved motorists money. In fact, it would have resulted in higher petrol prices.

"While the Government may decide to re-introduce the proposed scheme at a later date, for now, the message is clear. Fuelwatch is finished.

"Fuelwatch was flawed because it targeted retail fuel prices. The only way to ensure cheaper fuel prices is to allow independent service station operators fair and equitable access to competitive fuel supply at the terminal gate. The wholesale market is all-but wholly in the hands of the big oil companies.

"VACC believes the proposal by the Service Station Association (SSA) to force the oil majors to share port facilities with competing importers will introduce greater competition at the wholesale level."

In addition to the concerns expressed by the VACC on behalf of fuel retailers, the Fuelwatch scheme was deemed administratively complex and unlikely to yield the same discounts commonly available currently to those who hold off buying fuel until Tuesdays.

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