Caltex Australia Not Concerned About FuelWatch

Australia's biggest oil refiner also said that it wouldn't mind if the government's FuelWatch plan didn't come to fruition because it had a neutral position on the proposal.

The federal government wants to introduce the scheme, which requires petrol retailers to advertise their prices 24 hours in advance, as it attempts to respond to rising cost pressures on voters.

"I think the public is starting to focus a lot more on the crude oil price and that it is a major constituent of the petrol price," Caltex chief executive Des King told local media. "There's also more focus on the fact that the tax on petrol is over 50 cents a litre," Mr King said, adding that Caltex made a profit on petrol in 2007 of 1.5 cents a litre.

Light, sweet crude for October delivery plunged $US6.59, or 5.43 per cent, to settle at $US114.59 a barrel on the New York Mercantile Exchange at the week-end. It was crude's largest single-day price drop percentage-wise since December 27, 2004, when prices dropped 6.47 per cent. Crude oil prices have now tumbled significantly from their July high of $US147.00 but are still almost twice as expensive as two years ago.

FuelWatch appears dead, with Family First senator Steve Fielding last week joining independent Nick Xenophon in saying they won't support the scheme as it stands now. "We don't like to have more regulation in our industry, there's a lot already," Mr King said. "But overall the impact on our business we feel would be quite neutral whether it was in or out."

Mr King said that under FuelWatch people who filled up every Tuesday would be losers because the price cycle would have to be extended to 10 to 14 days from seven days. People who just fill their tank when it's empty would probably benefit, he said.

Caltex last week reported a four per cent fall in net profit, including inventory gains, to $354 million for the six months to June 30.

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