Australia’s Queensland pledges state-owned retail fuel

Australia's Queensland Labour party government has promised to open a chain of state-owned retail fuel outlets and cap day-to-day fuel increases, as part of its campaign in the lead-up to the 26 October state election.

State-owned stations would charge a fair price for fuel and increase competition for Queensland motorists, premier Steven Miles said, adding that the fuel stations will be built in areas where competition was needed, operate on a cost-recovery basis, sell gasoline and diesel, as well as charging stations for electric vehicles.

"Currently when you fuel up your car with petrol you're sending money offshore to big multinationals. Our publicly owned fuel stations won't be taking a profit," Miles said on 6 August.

Miles also promised to legislate to limit gasoline price rises to once per day and to trial capping daily increases no more than 5A ¢/litre, with fuel outlets required to release price changes a day in advance, saying Queensland has the nation's least competitive gasoline market. The fuel retailing policy has been costed at A$36mn ($23.4mn), to be funded by borrowings in the government-owned corporations sector, Miles said.

Queensland's retail gasoline sales were 47,000 b/d during January-May this year, according to Australian Petroleum Statistics, with diesel retail sales of 42,000 b/d over the same period. The state's capital Brisbane hosts the 109,000 b/d Lytton refinery, one of only two remaining in the country, which is operated by Australian refiner and retailer Ampol.

By Tom Major