THE country’s peak competition regulator will use all the powers at its disposal to get to the bottom of Armidale’s criminally high petrol prices.
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Armidale has been announced as just the third city to have its fuel prices investigated by the Australian Competition and Consumer Commission (ACCC).
The watchdog will use its “compulsory information gathering powers” to force players throughout the supply chain to disclose details explaining their prices.
For years Armidale’s long-suffering motorists have been forced to endure the impost of paying some of the highest petrol prices in the state.
Last financial year unleaded fuel in Armidale averaged 144.7 cents a litre, compared to an average of 134.1 cents a litre in Australia’s five largest cities.
But it is the often vast discrepancy between Armidale’s prices and those of smaller neighbouring towns that has sparked allegations of retailers engaging in cartel-like behaviour.
While an ACCC investigation earlier in the year failed to find evidence of anti-competitive conduct, Northern Tablelands MP Adam Marshall says there is “no other explanation”.
“Armidale motorists have been ripped off at the bowser by unscrupulous local fuel retailers for too long,” he said.
“As I have repeatedly said in parliament and in public, I am in no doubt that local retailers are engaging in price-gouging.
“Not finding evidence doesn’t mean it’s not happening though and I sincerely hope the extra scrutiny placed on retailers in Armidale will see local motorists finally given a fair go at the bowser.”
However, ACCC chairman Rod Sims told The Leader yesterday that the new study would not specifically look for evidence of anti-competitive practices.
“What these studies are about is not looking for a breach of the act – if we stumble across a cartel that’s all very good,” he said.
“We will be looking at the data to understand what the cost of petrol is at the port, what it costs to transport it, what it costs to wholesale, distribute and retail it.
“Explaining to people why the prices are as they are will be helpful and hopefully we can uncover some things that can be changed.”
The ACCC’s petrol monitoring program is likely to deliver its findings into Armidale’s fuel prices either late this year or early next year.
