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Regulation and Deregulation of the Supply of Bulk Liquid Petroleum Gas in Queensland: A Case Study *
Author(s) -
ANDERSON DON,
FINN FRANK
Publication year - 1994
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.1994.tb01845.x
Subject(s) - deregulation , franchise , liquefied petroleum gas , petroleum , business , commerce , agricultural economics , economics , market economy , waste management , engineering , marketing , chemistry , organic chemistry
This paper presents a case study of the regulation and subsequent deregulation of the bulk liquid petroleum gas industry in Queensland. During the period of the regulated franchise system, prices paid by bulk LPG customers in south‐east Queensland were higher than those paid by customers in northern NSW (where no similar regulations existed) despite both sets of customers being supplied from the same source. In response to higher prices, some customers attempted to circumvent the regulations by utilizing inefficient configurations of gas cylinders as a substitute for bulk supply. Following deregulation, bulk LPG prices fell in previously franchised areas of south‐east Queensland.