High price of Diesel must be investigated by Rudd Government: Sophie

28-January-2009

Federal Member for Indi, Sophie Mirabella MP has added her voice to calls for an immediate investigation into the retail price of diesel.

“In recent months a growing number of local consumers have contacted my office with serious concerns regarding the increasing disparity in the price of diesel compared with unleaded petrol,” Mrs Mirabella said.

“Until the last couple of years, diesel has traditionally been significantly cheaper than petrol. While petrol prices have fallen in recent times, the price of diesel remains particularly high and the gap between petrol and diesel has widened and this is hurting local residents and families in the North-East.

“A range of excuses are provided from time to time such as a shortage of suitable crude, demand in the northern hemisphere winter, the economic boom in Asia and growth in aviation fuel demand. But none seem to offer a credible explanation for the huge discrepancy in pricing and that is why the Rudd Government must investigate this growing problem,” Mrs Mirabella said.

“While local motorists do bear the full brunt of the price at the pump, all Australians are affected by high diesel prices. Diesel is used by farmers, miners and the energy sector, who pass on higher transport costs to households by increasing their prices.”

“While large scale users of diesel in Australia such as the mining industry and big transport companies are naturally able to purchase diesel at discount prices, local motorists with diesel powered vehicles seem to be bearing the full brunt of the price distortions,” Mrs Mirabella said.

Mrs Mirabella said the ACCC had recently completed a review into the price of unleaded petrol and that the Rudd Labor Government must do the same for Diesel if they are serious about assisting locals in tough economic times.

“I join with my colleagues in calling for the Rudd Government to order an immediate ACCC investigation into the difference in fuel pricing between petrol and diesel.

“The ACCC should not just be patting the fuel companies on the back for price reductions for unleaded petrol, they should be asking why isn’t the price of diesel coming down as well?” Mrs Mirabella concluded.