Premier Pledges State-Owned Service Stations and Caps to Petrol Price Rises in Re-Election Bid

Some organisations have expressed concern about the effectiveness of government intervention on this scale.

A motorist fills his car at a petrol bowser in Brisbane, Australia on June 2, 2009. AAP Image/Dave Hunt

Public transport and cost of living continue to be key election pillars for Queensland Labor Premier Steven Miles, with a new promise to roll-out government-run service stations.

The announcement comes on the back of earlier transport-related election promises including 50-cent public transport tickets (which started on Aug. 5) and cheaper vehicle registration fees.

Miles detailed a plan for 12 government-run service stations in areas most needing competition, during the State of the State address in Brisbane.

The proposed scheme would also see fuel prices capped to five cents a litre increases per day.

“We don’t control global oil prices and we can’t force privately owned petrol retailers to charge less at the bowser, but a government I lead will do whatever we can to bring petrol prices down,” Miles said.

“Publicly owned fuel stations will charge a fair price for fuel, increase competition, and ensure Queenslanders have more choice when it comes to filling up.”

The move comes as Queensland gears up for its state election on Oct. 26 with the government facing pressure over its handling of youth crime, hospitals, and cost of living.

Other Promises

Miles says the state plans to take on multinational oil companies.

“Currently when you fuel up your car, you’re sending money offshore to big multinationals,” he said.

“Publicly owned fuel stations will charge a fair price for fuel, increase competition, and ensure Queenslanders have more choice when it comes to filling up.”

The premier has also announced that if re-elected, a new Independent Transport Authority will be established, a move which would result in bus, rail, and ferry service provider Translink having its own board and CEO rather than coming under the Department of Transport and Main Roads.

“Having an Independent Transport Authority will give them the ability to better coordinate all of that transport together,” Miles told ABC Radio Brisbane on Aug. 6.

“We want to find ways to make sure we have a better, more connected transport network.”

Premier Says Queenslanders Saving Millions

Regarding the 50 cent Translink tickets, Miles claims Queenslanders will save $150 million over six months.

“It’s always struck me that we charge the people who travel the furthest the most, when those are likely the people who can least afford it,” he said.

“And, those are the long distance travellers that we want to get off our busy roads, like the M1 and Bruce Highway.”

Concerns Over Government Intrusion

The policy proposal was also met with trepidation by the Australian Institute for Progress (AIP).

AIP executive director Graham Young said past policies showed intervention did not guarantee long term stability.

“It was only in the 1960s that the last Queensland government-owned butcher shop was sold, having failed to make any dent on meat prices,” he said in a statement.

“In present day Queensland, the government owns virtually all the power stations, but the price of electricity has risen 27 percent in the last 5 years, and Callide C, the power station that blew-up through lack of maintenance, has been offline for almost two years.”

Kellie Dewar, Deputy CEO of the Motor Trades Association of Queensland, was concerned about the impact of small franchise owners who often run petrol stations.

“While we understand the significance of reducing costs for consumers amidst the current cost-of-living challenges, various external factors play a role in determining fuel prices at the pump,” she told The Epoch Times.

“Factors such as the base price of crude oil, transportation expenses, taxes, and fuel excise all contribute to this.

“Depending on the location of these publicly owned fuel stations, smaller retailers in the area may face challenges competing with the government’s cost-recovery pricing.”

Dewar said any moves made in the industry needed to be carefully thought about.

“It is a very complex issue, and considerations need to be made to ensure retailers can continue to run their businesses successfully,” she said.

“We look forward to learning more about the government’s plans to support independent businesses currently operating in the market.”

RACQ Backs Price Regulation

Queensland’s peak motoring and roadside assistance body, the RACQ, says it fully supports a cap on daily fuel price rises across the state—an idea the group says it originally spearheaded.

RACQ managing director and CEO David Carter described the cap as a win for drivers.

“It will be a lot easier to fill up when you can see prices start to climb by five cents per day. Currently when the hike is on—prices jump by up to 50 cents in an instant and there’s no way of knowing when it will start or when prices will hit the cheaper phase again,” he said in a statement.

RACQ research showed greater Brisbane’s fuel price cycle had been stretched out to an average of 38 days—five times longer than what it was in 2010.

Back then, motorists had an opportunity to fill up at a cheap price every week, whereas now there were only around nine opportunities a year to get cheaper fuel.

Retail margins have also doubled in this time and the price hikes are more than triple.

Carter also backed plans for a single public transport authority in the state.

“A single authority will lead to more effective and efficient running of buses, trams, trains and ferries,” he said.

“RACQ has felt for some time that South East Queensland’s public transport system is convoluted, marked by multiple agencies and organisations with overlapping roles and responsibilities.”

The RACQ did not comment on Miles’ plan for government-run service stations.