THE ACCC has bowed to public pressure and agreed to probe Armidale's "extortionate" fuel prices.
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The shock turnaround comes a day after Northern Tablelands MP Adam Marshall launched a blistering attack on the consumer watchdog, branding it an "anti-competitive eunuch" over its reluctance to investigate the yawning gulf between unleaded and diesel prices in Armidale and other centres.
The NRMA's Petrol Watch site showed Armidale was the third most expensive place in the state for fuel this week out of the 52 centres surveyed, with unleaded prices averaging 156.9c a litre.
Despite refusing to investigate the allegations of price fixing in a letter to Mr Marshall on Tuesday, the ACCC yesterday had a dramatic change of heart, thanks to an intervention from Inverell-based federal senator John Williams.
Mr Williams confronted an ACCC senior executive outside a senate estimates hearing on Wednesday night and demanded the issue be looked at.
"The letter they sent Adam (Marshall) back was pathetic and just bureaucratic BS," Mr Williams said.
"It was totally unacceptable so I went into the waiting room (outside senate estimates) and asked that they give a commitment they would investigate it properly.
"They said they would and I respect that. The ACCC actually has a pretty good record on fuel."
He said it was "absurd" Armidale motorists were paying up to 23c a litre more than Sydney,14c more than Dubbo and 8c more than Inverell.
"The retailers claim that it costs more to transport it to regional areas doesn't hold water when you look at those figures," Mr Williams said.
"They're just sucking blood out of Armidale."
He said he had a "gut feeling" the big oil companies, not the retailers, may be to blame by charging more for wholesale fuel to Armidale than other centres "because they could".
Mr Marshall welcomed the ACCC's turnaround.
"It's a great outcome but we shouldn't have to go to the extent of two speeches in parliament and a caning in the press for the ACCC to do its job," he said.
"There was always enough prima faci evidence there to warrant it being looked at."
An ACCC spokesman said the watchdog took allegations of anti-competitive behaviour serious and would "consider the matter raised by Senator Williams".
