Maximum wholesale prices for petrol and automotive distillate will fall in Victoria on 1 June 1997, following the Victorian Government's announcement of lower business franchise fees.
In today's Budget speech the Victorian Treasurer, Mr Alan Stockdale, announced reductions of around 1.6 cents per litre for petrol and 4.1cpl for automotive distillate in the monthly franchise fee payable by wholesalers at the end of June 1997. In accordance with its long standing policy, wholesale price caps endorsed by the Australian Competition and Consumer Commission for Ampol, BP, Mobil and Shell will therefore reflect fee reductions on and from 1 June 1997 (that is, the first of the month in which the revised franchise fee is payable).
At the same time the Victorian Government has asked the ACCC to increase its surveillance of retail fuel prices to identify any cases where the retail price does not fall to the extent of the fall in franchise fee.
"For its part, the ACCC will continue, in conjunction with the RACV, to closely monitor pump prices in metropolitan and country areas and to report to the Victorian Government as a matter of priority on movements in both wholesale and retail prices over this period," ACCC Chairman, Professor Allan Fels, said today. "In the meantime, wholesale price caps in Victoria will continue to reflect trends in international petrol and distillate prices as well as freight and exchange rates".
Further information Professor Allan Fels, Chairman, (06) 264 2829 or pager (016) 373 536 Mr Geoff Asher, Principal Industry Analyst, (03) 9290 1840
In today's Budget speech the Victorian Treasurer, Mr Alan Stockdale, announced reductions of around 1.6 cents per litre for petrol and 4.1cpl for automotive distillate in the monthly franchise fee payable by wholesalers at the end of June 1997. In accordance with its long standing policy, wholesale price caps endorsed by the Australian Competition and Consumer Commission for Ampol, BP, Mobil and Shell will therefore reflect fee reductions on and from 1 June 1997 (that is, the first of the month in which the revised franchise fee is payable).
At the same time the Victorian Government has asked the ACCC to increase its surveillance of retail fuel prices to identify any cases where the retail price does not fall to the extent of the fall in franchise fee.
"For its part, the ACCC will continue, in conjunction with the RACV, to closely monitor pump prices in metropolitan and country areas and to report to the Victorian Government as a matter of priority on movements in both wholesale and retail prices over this period," ACCC Chairman, Professor Allan Fels, said today. "In the meantime, wholesale price caps in Victoria will continue to reflect trends in international petrol and distillate prices as well as freight and exchange rates".
Further information Professor Allan Fels, Chairman, (06) 264 2829 or pager (016) 373 536 Mr Geoff Asher, Principal Industry Analyst, (03) 9290 1840