FuelWatch petrol plan under pump as oil prices soar

LOCAL fuel prices and world oil prices have hit new highs as the Opposition threatened to block the Rudd Government's answer to petrol woes.

Global oil prices streaked into new record territory for the second straight day overnight, with light sweet crude crossing US$115 a barrel in New York for the first time ever.

Iran, a member of the Organisation of the Petroleum Exporting Countries, which produces 40 per cent of global oil output, rejected calls from oil-consuming countries for the cartel to act to lower prices.

"Why should OPEC try to lower the prices, despite the demands from the United States and Britain?" Oil Minister Gholam Hossein Nozari told an oil conference in Tehran.

"They can go on demanding what they want," he said.

The price of unleaded patrol jumped to a record $1.52 a litre at some service stations yesterday - up from a peak of $1.49.9 last week.

The spike, driven by global oil prices, came as the Opposition, fuel retailers and motoring groups attacked the Government's FuelWatch plan.

The FuelWatch scheme will force petrol stations to publish at 2pm each day their pump prices for the next day, fixing the price for 24 hours.

Opposition Leader Brendan Nelson said he was concerned the scheme would eliminate weekly discounting, which delivered cheaper petrol on Tuesdays.

"We will have a look at the fine print in this legislation, because I am suspicious workers and battlers that are getting discounting every week, early in the week, might actually lose it," Dr Nelson said.

"We have got to make darn sure that that discounting absolutely continues."

Assistant Treasurer Chris Bowen said the Coalition wanted to block cheaper petrol for motorists.

An analysis by the competition watchdog found the system had brought down petrol prices by 1.9, on average, in Western Australia.

"On the low points of the current weekly cycle, like Tuesdays, motorists were still paying less in Western Australia under FuelWatch, an average of about one cent per litre less," Mr Bowen said.

Fuel retailers said they should be able to reduce their prices, but not raise them, after notifying the Government..

The RACV is strongly opposed to the plan, saying it would eliminate the usual weekly discount cycle.

Herald Sun, 17 Apr 2008

No Government will do anything especially since they tax at 60%, and it is an economy that a measly little Victorian / WA / Australian Government cannot influence. The ACCC is knowingly conning the Australian public that it will do something.