Issue Date:  -  Tuesday, 24 April 2001

Service station sign-boards to increase competition

Albany service stations will be the first required to detail current fuel prices on roadside sign-boards under new regulations introduced by the State Government.

Consumer Affairs Minister John Kobelke said today the regulation requiring fuel prices being displayed on sign-boards was intended to help encourage competition among service stations.

"Everything the State Government has done and is planning to do in relation to the fuel industry is to help motorists get a fairer deal," Mr Kobelke said.

"Having service stations display their prices on sign-boards is another step in that direction - to encourage competition to ensure that petrol is being sold at the best price possible for motorists.

" Mr Kobelke said the sign-board regulation would first operate in Albany before being introduced into other nominated regional areas.

He said the regulation would require publication in the Government Gazette before taking effect. In addition retailers would be given time to prepare - seven days if they currently had sign-boards and 30 days if sign-boards were required.

After regulation is in force, retailers who failed to display their prices could face fines up to $1,000 for an individual and $2,000 for a company.

"There would be very few service stations in the metropolitan area that do not have sign-boards displaying their prices," Mr Kobelke said.

"The reason they have those sign-boards is because of the need to compete for customers and that is what we want to encourage among retailers in larger centres such as Albany.

" Mr Kobelke said that in addition to the sign-boards regulation, the State Government was close to announcing the formula that would be used to set a retail price cap in selected regional centres.

Once the formula had been established by the Ministry of Fair Trading, there would be a consultation process to ensure that it would be workable for both industry and consumers.

"Already we have introduced the wholesale fuel price cap and are currently drafting the 50/50 legislation to allow retailers to get up to half their fuel from an alternative supplier," Mr Kobelke said.

"The State Government is leaving nothing to chance to ensure that motorists in Western Australia get the best deal possible on paying for their fuel.

" Mr Kobelke said once the retail price cap had been established the Ministry of Fair Trading would then begin work on a wholesale price cap for LPG.

Media contact: Zac Donovan (08) 9222 9211