Re: The Oil Parity Pricing Rort.

 

 

The Australian public must support an independent inquiry into parity pricing.

From its original introduction and to any financial relationship/funding between the oil companies and the Liberal Party: The failure of the Howard-Vaile Coalition Government to legislate to grant powers to the ACCC to monitor all fuel prices on a regular basis and if required take the necessary action against the offending Petroleum Companies. To do otherwise would be a serious breach of competition to the detriment of every Australian.

 

Industry figures just released [ Blomberg] show in the first quarter 2008 Australian Petroleum companies, together with their parent International Petroleum Groups profits increased by between 35% and 42%.those where Mobil/Exxon $10.2Billion Caltex  $6.8Billion Shell $7.3Billion BP $7.2Billion.

In December 1983 the price of a barrel of Oil rose to an all time record high at US$45 and the retail pump price average was .38c per/litre, compare that to August 2006 Price of a barrel of Oil at US$74 the pump price was as high as $1.45 per/litre Why !

 

In 1976 John Howard, when Treasurer in the Fraser Government, introduced Oil Parity pricing allowing Oil Companies to artificially jack up their prices even though Australian production costs remained low as a deceitful contrived necessity: Oil Companies were given permission to charge overseas prices for all the oil discoveries in Australia, allowing them to make massive profits under the guise that it encouraged them to search for oil here. Howard's argument for its introduction was "Oil Companies needed greater financial incentive to search for oil." What was deviously kept hidden from the people was that over 70% of all oil exploration expenditures were reclaimed under Oil Search Subsidies in direct refunds of taxpayers' money and more in taxation breaks. So basically it would have cost the Oil Companies a minimum amount to search for oil. Thus there was no legitimate reason for introducing parity pricing.

 

On August 1, 1978, when he realized the Prices Surveillance Authority were on to him over this rort, Howard removed their authority to investigate. What was behind his panic reaction to prevent any investigation? What was he hiding?

 Prior to this, we benefited from lower fuel prices: the only change that occurred was the Oil Companies now made billions in legalized robbery from the Australian people. So why would a Government deliberately allow Oil Companies to plunder its citizens in such a blatantly unsympathetic manner? And why did the ALP remain silent on the issue? In fact, when Hawke and Keating won Government from Fraser in 1983, they failed to address these concerns. Why? Why would a Government financially disadvantage every Australian family in favour of supporting money-hungry Oil Companies?

 

The ACCC's current advice is they are still prohibited by law from investigating fuel prices. The big question is: Why was the Howard Government and now the Rudd labor Government  preventing the ACCC from investigating Oil Company rorts?

 

Industry figures obtained from ABS covering FY2006/07 show that Australia exports around 520,000 barrels of crude per/day and imports around 950,000 barrels from OPEC ie: [one barrel=166litres].

For years, when overseas oil prices went up, immediately the pump prices rose with no Government control over the bulk storage purchased at the old price and still being consumed; when the price went down, the pump price was not reduced until the stored reserves were used.

So why are we exporting our oil and not reaping the lower cost benefits to the Australian people by compulsory usage here? Legislation should ensure Australian oil must be the priority usage here over imported fuel, and any percentage only of imported fuel be added above the cost of Australian crude oil. We produce our oil at less than $10.00 per barrel and buy OPEC oil at $70.00 per barrel. What evidence is there that the imported price figures are correct and not purely contrived figures? After all, the Prices Surveillance

Authority and the ACCC have been prohibited by law from conducting any investigation. We have a seriously perverted democracy when a Government deliberately disadvantages its citizens to the benefit of overseas Oil Companies