Gas stations in Western Australia have announced that they will be charging customers for free after a government-backed initiative to reduce fuel bills.
The regional government has announced that gas stations will now be charging $0.65 a litre for each litre of gas, which will go into the coffers of the WA Government.
It is an effective way to cut costs for motorists.
This comes as the state is grappling with record heatwaves and drought, as well as rising air pollution and the high cost of electricity.
“We’ve been able to cut fuel prices for our customers, and we want to keep doing that,” the WA State Government’s gas pricing chief, Paul Goss, said in a statement.
Gas stations across Western Australia will be selling fuel at a discount of $0:50 a litne, to help consumers save money.
There are currently around 100 gas stations in WA, with some in remote areas that are also charging customers the discounted rate.
State Premier Mark McGowan said the price change was a “small but important” step to help reduce the costs of gas in WA.
Mr Goss said the announcement had been made to address a number of “significant concerns” in the state.
WA State Government gas pricing director Paul Goxley said the change would mean consumers could save about $1.50 a week.
While Mr McGowan had welcomed the announcement, the WA government’s Gas Council has questioned the policy, saying it is “too expensive”.
“It’s a small change to offset a large number of price hikes that have been imposed over the past five years by the State Government,” the Gas Council said in its statement.
“The gas price increase was caused by a lack of flexibility in the fuel price structure and a lack in incentives to drive economic growth.”WA gas stations are not the only ones offering a discount to consumers.
In New South Wales, gas stations and petrol stations are also offering discounts to customers, but this is limited to about 10 per cent of the retail price of the fuel.
However, the discounts will be for consumers who use the cheapest price available, with a maximum of two per cent discount for consumers with the most expensive car in their household.
A spokesperson for the WA Premier said the policy was “part of a broader plan to help deliver economic growth” by lowering gas prices.
Topics:environment,environmental-impact,gas,gas-industry,business-economics-and-finance,australiaFirst posted March 15, 2018 07:33:20Contact Lisa DeakinMore stories from Western Australia