WA fuel prices: Government won’t rule out price cap, insisting no petrol shortage even as bowsers run dry

The WA Government will convene a roundtable to tackle fuel shortages but insists they are a result of panic buying and there are no actual supply issues in the State as result of the war in Iran. Some petrol stations in Albany have reportedly run out, while farmers say they’ve been left high and dry and FuelWatch has warned that prices are already higher this week. Energy Minister Amber-Jade Sanderson insisted there’s no shortage. “it is demand that’s driving the disruption, not the actual supply,” she told reporters on Tuesday. “All of the contracts are being filled, 100 per cent absolutely being filled. But where the disruption is occurring is where people are panic buying or stockpiling fuels, so we would respectfully ask that people don’t do that.” Tuesday is usually the cheapest day in Perth’s weekly petrol price cycle, but Caltex outlets are currently charging an average 202.3 cents per litre for unleaded. The average price was 34¢ higher than last week. Under WA’s Petroleum Products Pricing act, the Government can intervene and appoint a Commissioner, who can set a price cap. The Government wasn’t ruling the drastic move out. “Everything’s on the table, and we’re watching it very closely,” Ms Sanderson said. “Certainly there are provisions in the Act, we’re looking closely at that, but we need to understand any potential unintended consequences here, and any potential disruption that that may cause as well.” Premier Roger Cook appeared reluctant though. He said the provision to set prices hasn’t been used since 1983, in Kalgoorlie, and could backfire. “The world’s changed quite a bit since (1983). Obviously, it does provide us with an opportunity to put a max but what happens then is that everyone just goes to the maximum price and and then you distort the market,” he said. “What we want to do is to see a competitive market operate, and the best way we can do that is for everyone to access FuelWatch through their Service WA app, and to a spot where the cheapest prices are.” Opposition MPs have accused the Government of being too slow to act, and claim that regional school buses are among transport services that have already run out of fuel. “The Premier clearly has his head in the sand, because yesterday he was saying that there’s no problem,” Nationals MP Lachlan Hunter said. “I literally had about 10 phone calls from farmers yesterday saying that they had to lay off staff, halt operations because there’s literally no fuel left in the tractors to prepare their paddocks for seeding. “We’ve heard from the northern end of the State . . . school buses can’t fill up their diesel, which is deeply concerning.” Ms Sanderson said WA has a 24-day supply of diesel in reserve, and will consider directing supplies to country stations that are running low. “Obviously that’s the sort of stuff we can explore in the context of this round table until we have more answers,” she said. “Look, we want everyone to not panic. I think that it goes for the retailers as well as the consumers.” The round-table will include industry leaders and peak bodies, and be held by the end of the week. Top lobbies Chamber of Minerals and Energy WA and Chamber of Commerce and Industry WA are understood to have been invited. The CME told The West Australian on Monday that it was yet receive reports of diesel supply disruption from its major mining company members. Farmers however are fearful and have started stockpiling supplies ahead of the seeding season. Meanwhile, questions are swirling as to how the State Government is preparing to replace capacity before the eventual retirement of coal-fired power stations. But in an interview with ABC Perth last week, Minister Sanderson said the number one priority was to “keep the lights on”, leaving potential wiggle room for State-owned coal to remain part of the energy mix. The Sunday Times revealed last week that the State Government was in advanced planning to build a new gas-fired power station in WA.