Profit margins revealed, as Roger Cook summons petrol companies to an emergency fuel security meeting

One WA fuel provider has knocked-back claims the industry is cashing-in on the war in Iran amid soaring profit margins, as the Cook Government summoned stake-holders to an emergency meeting in Perth. A Burk Group representative told reporters the company was “trying to give the best prices” to customers, on his way into the fuel security round-table on Wednesday. “We’re just trying to give the best prices to our customers. And hoping this war ends soon so we can continue doing business as usual,” regional manager Wali Mazhar said. He denied any price gouging. “No, we’re just trying our best to give the best prices to our customers.” A comparison of terminal gate prices and Perth’s average price for unleaded shows that the difference has surged in the past week, even on the cheapest days of the city’s usual price cycle. The gap between the wholesale price, which fuel companies pay, and the average price they’re charging at the bowser was 28.9 cents per litre last Thursday, compared to 15.1 cents the week before - according to the Australian Institute of Petroleum’s published data. It was 21.7 cents per litre on Sunday, versus only six cents per litre on Sunday March 1. The gap has averaged almost 19.5 cents per litre in the past week, compared to an average of 13 cents in all of February. Commerce Minister Tony Buti said the Government and FuelWatch are “monitoring” prices. “We encourage people to shop around, that’s why FuelWatch is so important,” he said. “There is panic buying. So of course, demand and supply. When there’s a great demand, obviously prices do increase.” In Parliament on Wednesday, Roger Cook accused the Government of feeding the panic calling it a “pathetic attempt to politicise” petrol prices, but he was confronted with proof a Government department is directing staff to fill up. The Opposition produced a WA Country Health Service memo telling staff in the State’s south-west that the minimum fuel level for work vehicles was being increased from a half-tank to three quarters “effective immediately”. Staff travelling out of town were ordered to depart with a full tank, because “fuel availability at your destination cannot be guaranteed”. Association of Mining and Exploration Companies chief executive Warren Pearce warned some explorers and smaller miners were at risk of running out of fuel in coming weeks. ‘If they don’t have fuel, the short answer is the mining and exploration industry stops running,” he said. “Things like non-essential projects, will start to be put on hold, drilling around mine sites. That does mean those industries will suffer.” Despite growing reports of shortages, Mr Buti denied there was any evidence of price gouging, yet, or that the Government has failed to act quickly enough. “We’re having this roundtable discussion today with the players in the field, the ones that will determine supply and also how it may have an effect on price,” he said. “From that hopefully we’ll have better information on what’s happening on the ground and, therefore, the Government can make informed decisions. We can’t make knee-jerk decisions that may have unintended consequences.” The Government has said all options are on the table at Wednesday’s fuel security round-table, including emergency rationing and price caps. Petrol companies and ministers will come face to face with farmers who say the Middle East crisis has left their tractors high and dry. In York, one local petrol station is restricting customers to 50 litres each. Opposition leader Basil Zempilas said the Government needs to emerge from its round-table with a plan. “Let’s insist that this is not just an exercise for the cameras, that something tangible and a meaningful plan to manage this situation will come out of this,” he said. “We have seen over the last week, some fuel companies have their prices higher than others with no apparent reason for that.” Consumer Protection Commissioner Trish Blake said naming and shaming outlets with the highest prices does work. “Where FuelWatch does operate and report on the pricing, it does offer that downward pressure on prices,” she told ABC Mornings. “On (cheap Tuesday) Perth in the metropolitan area was the cheapest Australia-wide by a long shot.” But she conceded drivers in some regional towns don’t have the luxury of shopping around for cheaper fuel. “And that is the difficult situation. Not all of the regional areas are on our FuelWatch website, but more than 80% of the regions are,” Ms Blake said. “In some regions, there is not choice, but where there is choice and you as the consumer vote with your feet, you are responsible for keeping that downward pressure on prices.”