31mar02

OIL companies would face hefty penalties for ramping up petrol prices during holiday periods under a new Labor Party policy.

Opposition assistant treasury spokesman Mark Latham said Labor would also overhaul the Trade Practices Act to reverse the onus of proof so oil companies would have to show they had not upped prices during holidays.

Oil firms would also face a warning system similar to soccer's yellow card so the Australian Competition and Consumer Commission could keep a register of complaints of misuse of market power.

Mr Latham said oil prices had climbed about 10 cents a litre through Easter.

He said this exposed the way oil companies exploit holidaymakers.

"For no other essential product or service do prices move around so substantially," he said.

"During holiday periods and weekends, Australian motorists are forced to pay higher prices due to the market power of the oil companies.

"Families are hundred of dollars worse off each year because of the failure of the federal government to increase competition and guard against price exploitation in the industry."

Mr Latham said under Labor's five-point policy, oil companies would face specific penalties and sanctions for price exploitation in holidays.

Under other changes to the Trade Practices Act proposed by Labor, oil companies would be prosecuted for abusing market power when their actions reduced competition or were likely to cut competition.

The existing act requires any company's action to be intentional.

Service stations would also be allowed to shop around for the best price.

Mr Latham said the government had failed to act on petrol prices for the past six years.

"Motorists have been ripped off by holiday and weekend price hikes for too long," he said.