Consumer Protection Minister John Kobelke said a draft of the new order would shortly be released to industry stakeholders for comment on administrative issues.
"The Gallop Government has always sought to regulate fuel prices at the wholesale level to maximise transparency and competition," Mr Kobelke said.
"Although the maximum wholesale price (MWP) regime has not worked as well as the Government intended, we will continue to strive for a better deal for motorists and retailers.
"In light of our experience, the TGP is a more preferable model to achieve those aims than the maximum wholesale price regime."
The TGP will allow oil companies some flexibility in setting their prices. This will encourage increased competition and allow contract-free retailers to shop around for the best 'spot' prices.
Mr Kobelke said that like Victoria, where the TGP had been operating for more than a year, WA motorists would benefit from greater transparency while retailers and consumers would have a greater awareness of wholesale prices.
The Australian Competition and Consumer Commission has stated that the TGP may address industry concerns such as differential pricing between franchisees and independents and the degree of competition in the industry.
"A terminal gate price has a better chance of providing more competition between fuel companies and bringing flow-on benefits for motorists through cheaper prices at the fuel pump," Mr Kobelke said.
The Minister said the Gallop Government was also calling on the Federal Government to introduce a code of conduct for the fuel industry on a national basis.
"The Federal Trade Practices Act gives clear basis for this much-needed code, while there may be some difficulty in implementing a fully effective code under State legislation," he said.
"However, if the Commonwealth fails to show any interest in protecting motorists and independent fuel retailers, the Gallop Government will investigate how it can introduce a code of conduct to apply in WA."
Mr Kobelke said the TGP, in combination with initiatives like the 24-hour rule, price boards and the FuelWatch information service, would put downward pressure on prices through the supply chain.
"Consumers should use FuelWatch to identify the cheapest prices and reward those retailers who are keeping prices down," he said.
