Caltex’s magazine for employees, franchisees & resellers
Issue 41 Feb – Mar 08
Petrol at what price?
The trend for fuel prices looks to be heading up. Our cover story looks at the recent ACCC report on petrol prices and Australian consumers.
Petrol at what price?
Australia’s fuel prices today may represent a bargain, and it’s time for motorists and regulators to think carefully about the future.
The ACCC petrol price report
The Star asked Managing Director and CEO Des King for Caltex’s views on the issues raised in the Australian Competition and Consumer Commission’s report on petrol pricing. Here’s what Des said...
Refineries set records
If teamwork is the fuel that lets people obtain outstanding results, Caltex refinery people have been running on full tanks for the past year.
Getting connected
Caltex franchisees across Australia are building their businesses by being closely involved with their communities. The Star spoke to three who are using smart ideas to engage potential customers and promote the Caltex brand.
StarCash kings celebrate success
What kind of competition makes a kid give back his prize? Answer: the kind where Dad puts up the prize money in the first place.
From the Managing Director
Petrol at what price? In a few years we may wonder at petrol prices in 2008. There is long-term upward pressure on prices because conventional crude oil reserves are limited. And carbon pricing to help reduce greenhouse gas emissions will increase Australian fuel prices from 2010.
Prices in many countries are already over $2.00 per litre and consumers have had to adjust to these. We understand consumers may be upset about the prospect of long-term higher prices in Australia, just as they were upset when high world prices increased petrol prices recently. However, it’s a prospect we all have to face.
The Australian Competition and Consumer Commission last year conducted an intensive inquiry into petrol prices. Its report debunks many of the myths around petrol pricing. We have updated the enclosed Petrol Pricing Mythbusters with extracts from the ACCC’s report.
The report concluded the petroleum industry is fundamentally competitive and did not recommend regulation. However, it also expressed concern over certain aspects of market operation and possible future developments.
Caltex does not agree with the concerns expressed by the ACCC in its report. In our view the supply chain from refinery to service station is highly competitive and provides customers all over Australia with a fairly priced, high quality, safe and reliable supply of fuel. In this issue of The Star, Caltex responds to the ACCC report. As well as commenting on the ACCC’s concerns, we suggest a much broader picture needs to be considered. The report provides just one perspective on the industry – that of consumer prices. The ACCC has an important role to play but factors like the environment, security of supply and the viability of the refining industry need to be considered when policy decisions are made by governments. Retaining a substantial oil refining capacity is essential to Australia’s future security.
I trust you will enjoy reading this issue of The Star and Caltex Talkingpoint.
Des King