Issue Date:  -  Thursday, 27 June 2002

Consumer Protection prosecutes BP.

Consumer Protection Commissioner, Patrick Walker, today announced that the Department of Consumer and Employment Protection (DOCEP) has commenced legal proceedings against BP for two alleged offences under WA's Petroleum Products Pricing Act 1983.

"We're prosecuting BP for allegedly breaching the Act on two occasions by refusing or failing to supply fuel to a retailer at the maximum wholesale price (MWP)," Mr Walker said.

"BP allegedly contravened section 19 of the Act by refusing to supply two independent retailers (WESCO and another independent retailer) with fuel after both retailers attempted to purchase fuel at the MWP," he said.

Section 19(1) of the Act makes it an offence for an oil company to refuse or fail to supply a quantity of fuel to a retailer who:
Demands to purchase a quantity of fuel; and
Tenders payment for the fuel at the MWP.

The alleged offences occurred in June and July of last year and BP could face fines of up to $20,000 for each offence if found guilty. The Government has since increased the penalties and offences committed since 1 January 2002 will attract penalties of up to $100,000.

"We want the oil companies to know we are watching them and that we'll be taking action when we see a breach of the Act," Mr Walker said.

Mr Walker said that the MWP was there to ensure competition in the marketplace and that fuel retailers trying to access fuel at the MWP would be supported by the Department.

"We will continue to protect the rights of retailers under the Act and we will continue to bring legal proceedings against those oil companies not complying with the legislation," he said.

The MWP is the maximum price that a supplier from a controlled terminal can charge for selling fuel to an eligible spot purchaser. The MWP is fixed daily by the Commissioner under the Petroleum Products Pricing (Maximum Wholesale Price) Order (No. 4) 2001, which commenced on 21 August 2001.

The first hearing date for the prosecution against BP is 6 October 2002 at the Court of Petty Sessions.

DOCEP is also currently prosecuting Mobil for an alleged breach of section 19 of the Act and the hearing date is set for 21 August 2002.