BARA announced in March 2016 that it would continue to work with Australia's international airports to seek greater access to on-airport jet fuel storage in order to facilitate greater competition for this input. BARA rates the competitive conditions for jet fuel in Sydney and Melbourne as poor, with only two effective suppliers, and Perth as very poor, with only one effective supplier.
The Harper Review of Competition Policy in Australia, released in March 2015 (Harper Review), expressed the view that competition in jet fuel supply should be a focus for further reform but did not make a formal policy recommendation. In consequence the Government response, published in November 2015, did not expressly refer to this issue. Nevertheless, the view expressed in the Harper Report provides an opportunity for stakeholders to seek reform in this area.
In February 2016, Mobil Oil announced plans to construct a new 2.7km pipeline linking its Yarraville fuel distribution terminal to an existing pipeline to Melbourne airport. Construction is likely to be complete by early 2017. Although this may assist to reduce supply constraints (there were 2 black traffic light incidents in 2015), it will not address the relatively low level of competition.