WA FuelWatch inspection blitz catches some retailers out, boss warns of more bowser pain

FuelWatch has launched an inspection blitz and handed out 21 infringements, as the State’s petrol monitor warns retailers that prices that have gone up must come down - to reflect reduced fuel excise. Consumer Protection WA Commissioner Trish Blake has been in regular contact with retailers and fuel companies since the war in Iran brought the Strait of Hormuz to a standstill, and says she’s been blunt. “I’ve certainly sent a very clear message that, you know, prices have gone up like a rocket... they are not to come down like a feather,” she said. “We expect the same pace coming down. We expect that to match. And if it’s not matching, on the way out, we will be calling it out, and we’ll be naming and shaming.” But she’s warned the impact of the Iran war could last a while, even after the conflict ends. “Even once the war settles, it’ll take probably a good one to two months even for things to replenish.” Since the USA and Israel started bombing Iran, the average price of unleaded in Perth has surged 56 per cent to $2.57 per litre last week. FuelWatch has stepped up its response, with officers conducting 564 spot checks since March 1 - including 172 in the past week, and at least 128 in regional WA. There’s also been an increase in public reports, with 27 formal complaints about discrepancies between prices displayed on FuelWatch and what is being charged at the bowser. “Perhaps retailers are being a little bit less compliant because of the volatility of the fuel price,” Ms Blake said. “My gut feel, though, is the reports we’re getting are from consumers who are now so price sensitive that they’ll tell us, whereas before they would have gone, ‘I’m just going to go past that one, and I’ll go to another one’.” Two investigations have been launched into escalated prices and 21 infringement notices have been issued. Most infringements have been for breaches of the 24-hour rule that locks prices in from 6am each day. “Not all of them are for selling at a higher price,” the FuelWatch boss said. “They have to list a price board... (it can be) nothing more than a blackboard with some chalk prices on it, we’re not fancy. We don’t expect anything major, that’s all we ask for. “Then we’ve got a couple of investigations on which will likely result in court action instead of an infringement notice, because this is where we might be seeing slightly more egregious behaviour, or where we’re seeing repeat behaviour.” In court, penalties can reach up to $20,000 for an individual or up to $100,000 for a body corporate for serious or repeat breaches. But Ms Blake doesn’t believe there’s been widespread price gouging, since the Middle East conflict escalated. FuelWatch is now publishing weekly data to compare the terminal gate price and the average retail price charged at the bowser, after profit margins appears to increase in the first 10 days of the war. The gap has now narrowed. “What we’re seeing is an almost touching of the retail price and the wholesale price, so those margins are almost negligible now,” Ms Blake said. Last week, the terminal gate price was $2.468 per litre of ULP compared to an average retail price of $2.574. While, the terminal gate price for diesel was $3.097 versus an average retail price of $3.143. “Their tanks just got emptied overnight, as at the same time that the price of wholesale was going through the roof,” Ms Blake said. “So it’s now what we call a replenishment model, so, or replacement cost model. “It’s more forward looking. So that’s why you’re seeing a really significant increase in retail prices, but it is purely in line with those input prices, in the wholesale prices.” FuelWatch has been criticised for only being able to ‘watch’ but the Commissioner said transparency works - if people use the information to shop around. “All the retailers and the big fuel companies are on notice that we’re publishing their data. So we’re opening the curtain to those prices,” Ms Blake said. “And I’ll keep doing that beyond this crisis until we see prices normalised at the retail outlet. “That’s the beauty of FuelWatch is it gives consumers power to choose, and they reward the retailers that do the right thing by them. “That’s what loyalty looks like. Consumers shouldn’t be loyal now to a particular brand, because that’s no guarantee that they’re going to get the best deal. The best deal they’ll get is by looking at FuelWatch.” She’s urged consumers feeling the pinch of higher prices not to blame those behind the counter. “Please tell people don’t stockpile, but also be kind to the retailers,” Ms Blake said. “Their staff are copping a lot of abuse, and these are often, you know, sometimes backpackers, sometimes international students. Often they’re working alone and they have no power whatsoever over the prices set. “If they want to take out their frustrations, hop on the keyboard to the big majors and tell them, because they’re the ones that are setting the prices.”