China pushing up price of diesel: ACCC

The devastating earthquake in China and stockpiling for the Beijing Olympic Games are among factors which have forced the price of diesel up at a faster rate than petrol, the consumer watchdog says.

The Australian Competition and Consumer Commission (ACCC) says it has been asked by the federal government to start a renewed focus on LPG and diesel prices.

"Consumers have been concerned about the increased price of diesel and we are monitoring international benchmark prices and retail price movements on a daily basis across capital cities and country towns," ACCC petrol commissioner Pat Walker said in a statement.

The average daily retail diesel price has risen by more than 17 per cent or 26 cents per litre this year in the country's five largest cities - Sydney, Melbourne, Brisbane, Adelaide and Perth.

This is a greater increase than in the price of unleaded petrol, which has risen by 12 cents on average this year in the five cities.

"The ACCC is monitoring these prices closely," Mr Walker said.

The ACCC says the substantial rise in the diesel price in Australia reflects sharp increases in the international benchmark - the Singapore Gas Oil - which in Australian dollars has increased 40 per cent in 2008.

"The devastating earthquake in China has damaged power infrastructure and constrained coal transportation," it said.

"As a result, there has been an increasing demand on diesel to generate electricity.

"In addition, China has been increasing stockpiles of diesel ahead of the Olympic Games."

There had also been a greater demand by global refineries for processing diesel in recent years, especially diesel from low sulphur crude oil.

ninemsn 26 May 2008

The ACCC is utterly useless in terms of regulating and /or reporting the true causes behind the high prices of Petroleum products.
The PetroChemical Industry is operated by a select group of financiers who dictate the price.
Previously the excuse for the high cost of fuel was Hurricane Katrina. Australia's oil does NOT come from that region.
I cannot wait to hear an excuse from ACCC reading that "The High price of Gas is due to fluctuation of Polar Bear Flatulence."