Issue Date:  -  Wednesday, 7 May 1997

Effort to stop escalation of petrol costs

In an effort to stop any possible escalation of petrol costs during the current Transport Workers' Union strike the State Government, in conjunction with industry, has moved to ensure prices can be capped.

"If the threat to petrol supplies to Western Australians continues, the Government must move to protect the community," Fair Trading Minister Doug Shave said.

"We have taken positive steps which will safeguard the public against the possibility of price hiking which could take place during the union's industrial action.

"In consultation with industry, we will cap retail prices in a way which will ensure fair margins for dealers and fair prices for consumers. However, I hope it will not be necessary to take this action."

Mr Shave said no action to cap prices would be taken until the results of the TWU's meeting of Thursday 11 am was known.

Motor Trade Association executive director Bob Draper said retail prices of 83 cents a litre for super petrol and 80 cents for both unleaded and diesel were reasonable ceiling prices, based on current maximum endorsed wholesale prices.

Mr Draper supported the idea that prices might need to be capped at this level during the dispute.

He believed it would be a last resort as he was sure that retailers would act responsibly.

Mr Brian Reynolds, executive officer, Petroleum Retailers' Association, said he was sure retailers would be keen to be good community citizens and he would not expect them to take advantage of the industrial conflict.

Media contact:

Anabel Gomez
Tel: (08) 9366 0300 or (08) 9222 9595