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 BP does it again ... petrol prices hike 18 cents 

BP does it again ... petrol prices hike 18 cents

20 Jan, 2009 01:36 PM
A day after the nation's petrol watchdog said Perth petrol prices were behaving "strangely", BP has hiked them to their highest level in two months.

The oil major, which controls the Kwinana refinery, is putting up unleaded petrol prices at several of its service stations today by 18 cents a litre.

At 119.9c/l, they will be 15.1c above the metropolitan average, itself rising again despite falling prices internationally.

The RAC has called the price hike disgraceful.

It is the third time in a month that BP has hiked its prices against the trend. In mid-December it raised them by 12c/l, ending a two-month fall in the city.

That sparked higher average prices for Perth motorists for several days as other retailers followed suit. They did not fall again until just before Christmas.

BP again hiked prices by 12c/l on January 7, an action which was followed by Caltex the next day.

The Singapore benchmark price, used to set Australian prices, has risen in the past week by about 5/l but there is usually a lag of between one and two weeks before prices are passed on.

It was at yearly lows of 36c/l about three weeks ago.

The Singapore price's rise is at odds with the world crude oil price.

Competition expert Frank Zumbo, an associate professor at the University of NSW who predicted both previous price rises on WAtoday.com.au, said the Singapore price "appeared to be defying gravity".

"The so-called time lag (between changes to the Singapore and Australian prices) mysteriously disappears when the Singapore benchmark price goes up and that magically reappears when the Singapore price is on the way down," he said.

"A sharp rise (in the Singapore price) will also conveniently help oil companies boost their local profit margins at motorists' expense."

With the world oil price having fallen to $36 a barrel and a stable Australian dollar, Perth motorists should be seeing falls in retail prices, Mr Zumbo said.

But Perth motorists have had to contend with rising unleaded prices on 12 days in the past month.

BP's price of 119.9c/l has not been the average in Perth since November.

RAC head of member advocacy Matt Brown said motorists needed to use their "collective consumer power" to punish BP for the hike "and send a message to petrol retailers that they won't be gouged on petrol prices".

"If you see a BP station... charging 119.9c/l simply drive past it," he said.

There was no justification for Perth motorists to be hit with radical jumps in the price of petrol.

Petrol Commissioner Joe Dimasi told WAtoday.com.au that while petrol prices in Perth were behaving "strangely", mainly due to the price cycle disappearing, he had no concerns yet.

However, he was "keeping a close eye" on what went on in the Perth market, given that the Singapore and world prices continued to head downwards.

"If we don't have an explanation, we'd have to start looking at the behaviour of the participants, but the indication to me at the moment is that whoever is trying to put prices up hasn't succeeded."

He was satisfied there was enough competition to stop BP hiking wholesale prices beyond a reasonable level, despite it owning the Kwinana refinery, with the likes of WA-owned Gull able to import fuel and others able to do deals to get lower prices.

FuelWatch says 195 service stations will be selling petrol below the average price.

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The Oil Companies in OZ are a bunch of criminals ... I am glad I left the place for an easy life in Japan.
Posted by F355 Driver, 20/01/2009 5:27:19 PM
Why doesn't this public servant get tough - and instead of coming out, and saying "prices are behaving strangely" - say what we all know?? - that the fuel companies are operating hand in glove with cosy secret deals, to rort fuel users?? Dimasi should be given the powers of the CCC to investigate, wiretap, monitor, secretly record, and otherwise root out corruption and cosy secret monopoly arrangements amongst the fuel companies and corporate arena, so that he earns his money, and the fuel companies are kept honest. With an international fuel price of $US36 a barrel, we should be getting petrol for 90c a litre. This cosy rorting arrangement is a result of the monopolistic setup in WA, with only one refinery (owned by BP), and no efffective competition. It's the same with LPG. Wesfarmers/Kleenheat have been shafting the WA motorists for 20 years, since Kleenheat built the LPG refinery. Thanks to some useless, gutless, short-sighted politicians, and a cunning attitude by Wesfarmers/Kleenheat, we are being forced to pay 20-30pc more for LPG than is warranted. Kleenheat got a monopoly agreement in 1988, authorised by weak pollies (an unconstitutional travesty if there ever was one), by threatening to not build the plant, if they couldn't get a monopoly. They built the plant in 1988, the plant was paid for in probably 5 years, and 20 years later, we are still paying through the nose for LPG. There have been parliamentary enquiries into this, and they went nowhere, no doubt due to corporate pressure applied. In 1998, we were paying 30c a litre for LPG, and 27c when it was on "special" - and I went to Adelaide (where 5 companies compete for LPG sales), and LPG was 16c a litre, and 13c a litre when on "special". What more proof do we need that fuel companies shaft us every minute of the day, and at every opportunity? Roll on, some future statesmen of politicians, that have the guts to proceed with determination, to develop viable alternative fuels, and give the fuel companies the same regular kick they give us every second day of the week. CNG has to be one of those alternative fuels - the TransPerth fleet is going over to total CNG fuelling (1100 buses) - so now is the time to further develop a large CNG distribution network. We have enough CNG reserves to fuel our nation for 200 years.
Posted by Ron N, 21/01/2009 8:32:55 AM

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