Consumer and Employment Protection Minister John Kobelke said the TGP system was an important new development in the reform of the petroleum industry in WA.
"It will provide, for the first time, complete price transparency at the wholesale level of the fuel market," Mr Kobelke said. "Oil companies will be required to publish their 'terminal gate' prices by law.
"This will give retailers and distributors daily information on what the base wholesale price is.
"Retailers and distributors will be able to find out the TGP before they make a purchase, which is principally the same as what FuelWatch has offered consumers at the retail level for nearly two years."
Mr Kobelke said being required to publish wholesale prices would encourage competition at the wholesale level and would give eligible retailers and distributors the opportunity to shop around for the best wholesale prices.
It would also allow motorists to track oil company wholesale prices and compare them with retail prices, allowing them to determine the differences between the various wholesale and retail prices so there were no more 'hidden' costs.
All retailers who did not have a pricing contract, as well as those whose contract was entered into after November 1, 2000, would be able to buy fuel on the 'spot' market from a terminal at the TGP, either directly or by arranging for someone else to freight it for them.
Other provisions also coming into effect tomorrow meant anyone being supplied fuel from a seaboard terminal in WA would be entitled to receive an invoice which clearly showed how the final price of the product had been made up.
"Fuel retailers have the right to know exactly what they are being charged for," Mr Kobelke said.
"The invoice will need to show the TGP plus the cost of any 'post terminal gate' services such as delivery, credit and use of brand."
The Minister said the Government was encouraged by the co-operation shown by the oil companies so far regarding the introduction of the TGP.
But the Government would not hesitate to take action if they do not comply with these new provisions with penalties of up to $100,000 applying to breaches of the legislation.
