Australian Government Defeated on FuelWatch Scheme

Both FuelWatch and GroceryChoice - a similar scheme for monitoring supermarket prices - have drawn fire, with critics saying the initiatives did not put downward pressure on prices. The Government had found itself under pressure on fuel prices when a spike in the cost of oil pushed unleaded petrol to more than $1.70 a litre by June. But with oil falling below $US60 a barrel as a result of the global financial crisis, petrol fell this week to an average of $1.20 a litre.

In announcing that the Government would not resurrect FuelWatch after it was defeated in the Senate, Competition Minister Chris Bowen said FuelWatch was not the only measure to bring price relief to consumers. He cited increased powers for the competition watchdog, the Australian Competition and Consumer Commission, and a review of the wholesale market as other steps the Government was taking to bolster competition.

PetrolWorld 121108