6 February 2019
The Board of Airline Representatives of Australia (BARA) acknowledges that the Commission in its Draft Report ‘is concerned about the supply of jet fuel at airports, which is shrouded in secrecy and is dominated by four major oil companies. This has likely led to higher prices for jet fuel.’ If they do not provide it voluntarily, the Commission should use its information gathering powers to obtain the evidence it needs from the jet fuel infrastructure providers and fuel suppliers.
Problems with jet fuel supply
The Commission has stated that “Prima facie, the characteristics of markets to supply jet fuel have enabled incumbent fuel suppliers to restrict competition, which has led to a small number of fuel suppliers at some airports. This has likely led to higher prices to access infrastructure services and higher fuel prices.” This description fits with the experience of BARA’s member airlines.
BARA notes the following statements in the Draft Report:
“BARA supports the preliminary statements in the Commission’s Draft Report and will assist where possible in gathering further evidence as requested by the Commission. BARA also looks forward to reading Sydney Airport’s justification for the structure and size of its fuel throughput levy, which we consider to be a fee for no service,” Barry Abrams, Executive Director of BARA said. [END]