NSW: Lack of indy operators doesn't affect fuel prices: ACCC

AAP General News (Australia)
08-08-2006
NSW: Lack of indy operators doesn't affect fuel prices: ACCC

SYDNEY, Aug 8 AAP - A lack of independent petrol operators does not affect prices at
the bowser, Australian Competition and Consumer Commission (ACCC) chair Graeme Samuel
says.

As petrol prices continue to skyrocket there has been speculation that major chains,
such as Woolworth and Coles, are driving petrol prices upward.

But Mr Samuel today said the large independent operators, which traditionally lowered
petrol prices, were simply replaced by the major chains.

"All our evidence has shown that when Coles and Woolworths have entered markets ...

the average price of petrol has fallen by two or three cents a litre," he told ABC radio.

"They don't regard petrol as their prime business, their prime business is groceries
and they use petrol as a loyalty or marketing scheme and so they are tending to drive
prices down right across the board."

Despite the fact there are now fewer independent outlets, Mr Samuel said there were
still enough to keep the big chains in check.

"It is not to say the independents have disappeared, they are there," he said.

"I don't think we should assume that the so-called demise of the independents, which
frankly hasn't happened, ... (impacts) on petrol prices."

He said international crude oil prices, the exchange rate and weekly price cycles were
far more likely to affect motorists at the bowser.

He added that Australia had the fourth lowest petrol price among the 28 nations of
the Organisation for Economic Cooperation and Development (OECD).

AAP tr/klw/grc/sd

KEYWORD: PETROL NSW SAMUEL

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