CHESTER TAKES LPG CONCERNS TO MINISTER & ACCC
December 11, 2013
Federal Member for Gippsland Darren Chester has taken LPG (liquefied petroleum gas) pricing concerns directly to Industry Minister Ian Macfarlane.
Mr Chester said a sharp increase in the price of LPG over the past week has angered Gippsland drivers who have reported prices as high as $1.02 per litre at local fuel outlets.
“A large number of Gippsland motorists have had their vehicles fitted to run on LPG in an effort to save money,” Mr Chester said.
“However, this sharp price increase has reduced their capacity to make savings and understandably they are very frustrated and want answers on the cause of the increase.
“What has angered motorists most is that the increase occurred virtually overnight and comes just two weeks ahead of Christmas when their budgets are always stretched to the limit.”
Mr Chester said that Australian LPG prices are based on the Saudi Aramco Contract Price (Saudi CP), which is set on a monthly basis and had recently increased by a record high of 33 percent.
“The Saudi CP has increased on the back of tight global supply conditions and seasonal demand as the northern hemisphere enters winter. This together with the weakening of the Australian dollar, has further compounded the increase,” Mr Chester said
“LPG prices were de-regulated in Australia in 1991, however, in the interests of consumers and competition, the Australian Competition and Consumer Commission (ACCC) continues to monitor fuel prices in Australia’s capital cities and around 150 regional locations.”
Mr Chester said he would continue to raise the concerns of Gippslanders with the Industry Minister and the ACCC to ensure that retailers are not partaking in anti-competitive conduct, such as price fixing or collusion.