Mr FORREST (3:06 PM) —My question is addressed to the Minister for Regional Services, Territories and Local Government. Could the minister advise the House concerning his campaign to reduce the retail price differential in fuel products between city and country localities and whether progress is being achieved in this regard?

Mr TUCKEY (Minister for Regional Services, Territories and Local Government) —Thank you, Mr Speaker, and may I extend my congratulations to you on your appointment.

The SPEAKER —I thank the minister.

Mr TUCKEY —Immediately upon my appointment as minister for regional services, I made public announcements attacking the scandalous differential that exists between city and country retail fuel prices. I also proposed a solution which was to achieve by negotiation or legislation an open, consistent and transparent terminal gate price system, so as to allow resellers, larger country consumers such as farmers, and motorists either direct access to the best wholesale price or the knowledge of the profit margin charged by local outlets.

I have also made it clear that a typical road freight tanker freight rate for fuel is ½c per litre per 100 kilometres, meaning that for the majority of country resellers their freight cost is only equal to the Howard government one to three cent per litre country reseller subsidy. My office has already had discussions with major fuel companies and I am delighted to advise the House that the Shell company has announced today that it is to implement the process I have recommended in all states bar Western Australia where it is prevented from so doing by WA Labor government legislation. Shell has already announced a range of prices, which it will adjust twice weekly.

The member for Lingiari has constantly regaled this House with the cost of fuel at Yuendumu, approximately 1,200 kilometres south-west of Darwin. Under these new arrangements, and after allowing a fair margin, the price of unleaded fuel at that locality can drop from its present $1.40 per litre to $1 per litre. Prices in Bourke, Gympie and Mildura could fall approximately 5c per litre after allowing a 7c per litre retail margin, which compares favourably with the 2c per litre typical for larger outlets. These savings can only be delivered if retailers take advantage of the direct access I have negotiated. I trust local members will involve themselves in ensuring that their constituents receive the benefits of this government initiative and the responsiveness of the Shell company, whom I congratulate.