ARMIDALE motorists have questioned whether a “toothless” competition watchdog has the clout to drive down the city’s exorbitant fuel prices.
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The Australian Competition and Consumer Commission (ACCC) announced this week a thorough review of Armidale’s petrol supply chain.
Persistently high fuel prices over a number of years means it will become just the third city in Australia to be subject to such a review.
Armidale’s drivers are currently paying on average up to 17.4 cents a litre more for unleaded petrol than their Sydney counterparts.
The high prices, particularly in comparison with smaller surrounding towns, has seen locals – including Nationals MP Adam Marshall – suspect cartel-like behaviour.
But ACCC chairman Rod Sims dismayed many when he told The Leader the review would not specifically look at whether retailers were engaging in price-gouging.
He said an inquiry earlier in the year had found no evidence of anti-competitive practices and could give no guarantees the upcoming study would result in lower prices.
Armidale electrician Vince Williams operates a fleet of eight cars and regularly spends between $3000 and $4000 a month on fuel.
He said he had little confidence the ACCC’s review would make a material difference, especially if it was not going to delve into price-fixing.
“To me they’re a toothless tiger,” he said. “They don’t tend to do anything. I’ve never really seen them do anything other than try to shame them a bit.”
Mr Williams said the burden of high petrol prices made it difficult for driving-intensive small businesses to turn a profit.
“Armidale is bloody dear at the moment,” he said. “Not so much now, but recently you could go to Black Mountain or down to Walcha and it was flaming a hell of a lot cheaper than Armidale was.”
Fellow Armidale-based small business owner Rob Taber said the review “would not solve the problem” of high fuel prices.
“At the end of the day, what is the point of doing the survey if it can’t force some sort of change?” he said. “It pretty well means that the service stations can do what they want and get away with it.”
The results of the ACCC’s petrol monitoring program will be released either late this year or early next year.
