THE competition watchdog says it will investigate the South Coast petrol market if given evidence of “anti-competitive conduct such as price fixing”.
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Eurobodalla motorists still have no clear answer why petrol costs remained stubbornly high in the quarter leading up to September 19, despite prices falling dramatically in other regional and metropolitan areas.
The Bay Post/Moruya Examiner has reported Australian Institute of Petroleum figures showing prices fell an average 15 cents per litre in Wollongong, 14 cents in Sydney and six cents in Taree, but only an average of one cent in Batemans Bay.
University of NSW competition researcher Associate Professor Frank Zumbo labelled the prices “a rip-off” and said wholesalers refusing to pass on savings were probably to blame.
This week the Australian Competition and Consumer Commission (ACCC) confirmed its monitoring showed retail petrol prices in Batemans Bay were “relatively stable over the last three months with a slight downward trend”.
“The ACCC’s primary role relating to the petroleum industry, as with other industries, is to enforce the Trade Practices Act,” spokeswoman Lin Enright said.
“The ACCC would investigate further if there was evidence of anti-competitive conduct, such as price fixing, that breaches the Act.”
The ACCC and Eden-Monaro MP Mike Kelly have released general information from the ACCC website regarding the factors that may affect petrol prices in regional areas.
They said prices may be higher due to less fuel being sold, less sales at convenience stores, freight charges, storage and number of service stations (degree of local competition).
“These factors may also explain differences in fuel prices between Batemans Bay and other regional centres and country towns,” Ms Enright said.
“Fuel prices in regional centres and country towns do not vary as much and tend to change more slowly than those in capital cities.”
Dr Kelly reiterated this information and said: “Like all other sectors of the Australian economy, petrol is subject to the Trade Practices Act 1974 which prohibits anti-competitive behaviour such as price fixing.
“In the longer term I am keen to explore the possibility of bio-diesel projects for our region that can have a local supply base and remove our vulnerability to declining oil supplies globally.
“At the same time this would assist us meet our carbon emission reduction objectives and provide more job opportunities locally.
“I will have the opportunity to explore these possibilities in my new portfolio responsibilities and I have been in discussions with the Eon Energy company in relation to getting pilot sites up and running in Eurobodalla shire.”
