Grain Producers South Australia (GPSA) is calling on grain producers across the state to continue sharing their experiences with diesel supply and pricing through its recent survey, with feedback to be provided as part of a submission to the Australian Competition and Consumer Commission (ACCC).
On 20 March, in response to the ongoing supply impacts stemming from the Middle East conflict, the ACCC granted an urgent interim authorisation allowing the Australian Institute of Petroleum and its major members – Ampol, BP, Mobil and Viva Energy – to coordinate aspects of fuel supply that would ordinarily risk breaching Australia’s competition laws, including sharing information and coordinating the import, storage, transport and distribution of fuel across the country.
This provides temporary legal protection from certain provisions of the Competition and Consumer Act 2010 that prohibit anti-competitive coordination between competitors.
However, the ACCC has imposed strict conditions: the authorisation does not permit any discussion or agreement on fuel pricing, nor coordination of contracts with retailers or end users; participation must occur through monitored forums with ACCC and government oversight; independent fuel wholesalers must be prioritised and supplied; minimum volumes must be made available through spot sales; and the ACCC retains the power to revoke the authorisation at any time.
“The ACCC recognises the urgency of the request for interim authorisation to assist in addressing the impacts of the conflict on the supply of fuel products in Australia,” the ACCC said.
“In particular, the ACCC considers that a co-ordinated response by industry to a supply shock resulting from the conflict is likely to assist in securing supply of fuel products and facilitating the supply of fuel products to areas with the greatest need, including regional and remote areas that may be subject to fuel shortages”.
GPSA chief executive officer Brad Perry said the ACCC had invited the organisation to make a submission on the application providing information, evidence and views about likely benefits, effects on competition and any other public detriment from the proposed conduct.
“For GPSA’s submission, it is important we fully understand how these arrangements are playing out on the ground for South Australian grain producers,” he said.
“Diesel is a critical input for grain production, particularly heading into key periods like seeding, spraying and harvest.
“We’re keen to hear directly from growers about their experiences- whether that’s around availability, delivery timeframes, pricing, or any changes they’ve noticed in recent weeks.”
Mr Perry said there had already been more than 450 respondents to GPSA’s survey on fuel and fertiliser, but encouraged more grain producers to participate and provide feedback that may be useful for the submission.
“There are a range of factors at play in the current environment, and it’s important we capture what’s actually happening at the farm level,” he said.
“That will help ensure any feedback we provide to the ACCC reflects real-world conditions in South Australia as we want to make sure the voice of South Australian grain producers is clearly heard in this process.
“We’d encourage growers to take a few minutes to share their experiences so we can build an accurate picture of what’s happening across different regions.”
Grain producers can provide feedback by participating in the short survey that has been emailed to them directly.
More information about the ACCC interim decision can be found at accc.gov.au/public-registers/authorisations-and-notifications-registers/authorisations-register/australian-institute-of-petroleum-and-ors
