Fed: Oil companies and government under fire on petrol

AAP General News (Australia)
08-23-2000
Fed: Oil companies and government under fire on petrol

CANBERRA, Aug 23 AAP - Oil companies and the federal government are under fire as petrol
prices nudge the $1 a litre mark across the country.

The Australian Competition and Consumer Commission (ACCC) is launching an investigation
into claims that some oil companies are ripping off the government's fuel rebate scheme.

The scheme was put in place by the government to protect regional road users from a
price spike caused by the GST.

ACCC chairman Professor Allan Fels said he was investigating a Shell document produced
by the Labor Party which purports to show the company clawing back money under the Fuel
Grants Scheme.

Professor Fels said he had also opened a bigger inquiry into another, unnamed, fuel
company over a similar issue.

The government is also getting pressure from its own backbench, with several MPs calling
for a freeze on the fuel excise which is set to push prices up another two cents a litre
next February.

Queensland Premier Peter Beattie has even threatened an election on the petrol pricing
issue in a move denounced as a stunt by opponents.

But the surge in fuel prices, due mostly to falling worldwide oil production and climbing
prices, is proving fruitful political ground.

Treasurer Peter Costello rejected any freeze on excise, saying the government would
have to stop the six monthly inflation-linked increases to pensions to pay for the move.

It was not good enough for member for Hume Alby Schultz (Lib, NSW) who is taking on
Finance Minister John Fahey in a redistribution battle.

"Get a life Peter, start thinking about the people out here," he told ABC radio.

Mr Beattie has called on state government leaders to hold a petrol price inquiry, with
the federal government and Senate unlikely to back something similar.

AAP sw/hu/de

KEYWORD: PETROL DAYLEAD

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