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Regulation and Deregulation of the Supply of Bulk Liquid Petroleum Gas in Queensland: A Case Study

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  • DON ANDERSON
  • FRANK FINN

Abstract

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.

Suggested Citation

  • Don Anderson & Frank Finn, 1994. "Regulation and Deregulation of the Supply of Bulk Liquid Petroleum Gas in Queensland: A Case Study," The Economic Record, The Economic Society of Australia, vol. 70(210), pages 253-261, September.
    • Handle: RePEc:bla:ecorec:v:70:y:1994:i:210:p:253-261
    DOI: 10.1111/j.1475-4932.1994.tb01845.x
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    1. repec:bla:ecorec:v:59:y:1983:i:164:p:16-27 is not listed on IDEAS
    2. Robert P. Albon & Michael G. Kirby, 1983. "Cost‐Padding in Profit‐Regulated Firms," The Economic Record, The Economic Society of Australia, vol. 59(1), pages 16-27, March.
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