If it does happen, it will get us nowhere...
Petrol bosses could face senate
June 21, 2006 - 8:04PM
Oil companies could be forced to defend their pricing policies in parliament as motorists continue to struggle under record high petrol prices.
Labor tonight signalled it would try to create a Senate inquiry into petrol price setting - and it immediately won support from Nationals senator Barnaby Joyce for the idea.
Opposition Leader Kim Beazley said the government was continuing to ignore the plight faced by motorists, who are paying up to $1.53 a litre in some parts of the country for fuel.
He said a Senate inquiry would show the government was not afraid of the upper house using its powers to investigate issues of importance to everyday Australians.
"We need these petrol companies to explain how they set petrol prices," he said.
"Skyrocketing petrol prices are putting significant pressure on families in middle Australia and it is not good enough for (Prime Minister
John) Howard to say there is nothing he can do.
"Labor wants to bring petrol company executives before the Senate to explain to Australian motorists how they set their prices."
With the parliament not sitting for another six weeks after Friday, the earliest the Labor proposal can go to the Senate is in August.
Senator Joyce said he had no trouble with putting oil company chiefs under the microscope.
"I think it would be good and it's one of the things we'd hope, with the new structure of the Senate committees, we'd be able to suggest and get out there," he told the Seven Network.
But there are doubts whether the inquiry would discover anything new, with the head of the Australian Competition and Consumer Commission (ACCC) today saying motorists are not being gouged at the bowser.
Graeme Samuel said too much regulation of the petrol market could actually push up prices.
"On all the analysis that's ever been undertaken by the ACCC, the more you attempt to regulate prices in this area ... the more likely it is that on average prices will be higher and consumers will suffer," he said.
Mr Samuel also says prices in Australia are broadly consistent with the international benchmark price for crude oil.
"I say broadly consistent, don't tie me down to one or two cents a litre ... we're broadly consistent in this country, averaging out those cycles, with what happens on the international marketplace," he said.
Mr Samuel said the best way for motorists to avoid really high prices was to fill up during the week.
He said service stations lifted their prices at weekends because that was when demand was at its highest.
"Those that are selling petrol need to make a profit at some stage, they know that most motorists will purchase petrol at the weekend, when it's convenient," he said.
"At the low point those that are selling petrol are potentially losing money, at the high point they are making money and it averages out over a week."