NSW: Easter petrol price hike referred to ACCC

AAP General News (Australia)
04-12-2001
NSW: Easter petrol price hike referred to ACCC

By Libby Sutherland

SYDNEY, April 12 AAP - A 10 cents a litre rise in petrol prices around the country
in the lead up to the Easter weekend will be investigated by the nation's consumer watchdog.

Petrol prices rose by 10 cents or 11 cents a litre in most states overnight, leading
to an outcry by motorists ahead of the traditional long weekend driving holidays.

NSW Fair Trading Minister John Watkins today said he had referred the matter to the
Australian Competition and Consumer Commission (ACCC) immediately after learning of the
overnight hike.

"This is an outrageous Easter ambush on every motorist in NSW," Mr Watkins told reporters.

"We are all being played for suckers by the petrol companies.

"Nothing appears to be sacred to the petrol companies not Easter, not consumers, not
families travelling on holidays.

"That's why this morning I've written to Professor (Allan) Fels from the ACCC to ask
him to urgently investigate this price rise to see if there's possible collusion between
the petrol companies."

The association representing Australian oil companies welcomed the probe, saying the
latest price fluctuations were just part of the normal "discounting cycle".

"I think any claims of profiteering are totally unfounded," Australian Institute of
Petroleum executive director Bryan Nye (Bryan Nye) told AAP.

"The ACCC continuously monitors petrol prices at over 4,000 sites around Australia
and they haven't found any profiteering at any occasion and we'd welcome any investigation
by the ACCC.

"Everybody notices when it (the price) goes up but nobody seems to notice when it goes down.

"We keep saying to people when it's the bottom of a cycle people should be buying their petrol."

A spokeswoman for Prof Fels said the ACCC had been monitoring fluctuations since the
introduction of the 1.5 cent per litre excise cut early last month.

If there was any evidence of anti-competitive behaviour, the ACCC would seek evidence
to take action, she said.

"If we had sufficient evidence we would look at prosecutions under the Trade Practices Act."

Speaking in Perth, Prime Minister John Howard said petrol prices were high because
of high world oil prices.

"But I really can't give a commentary on individual petrol prices in the thousands
of outlets around the nation," he said.

Meanwhile, the NRMA's Ron Carter said the association had surveyed 600 Sydney petrol
stations and found more than half had increased prices for unleaded fuel since yesterday.

Accusing oil companies of profiteering, Victoria's peak motoring group RACV said motorists
were facing hikes of 11 cents a litre.

The areas worst hit included Melbourne and major regional centres, such as Geelong.

Similar increases have been reported in South Australia and Canberra.

ACT Fair Trading Minister Bill Stefaniak said he was appalled by the actions of the
petroleum industry.

He said the ACT Legislative Assembly had earlier referred the issue to the Independent
Competition and Regulatory Commissioner.

Queensland fuel price monitor FUELtrac (FUELtrac) said some service station prices
had risen by as much as 10 cents a litre.

However, FUELtrac general manager Geoff Trotter said the price rises were no higher
than usual weekly fluctuations. He said prices were expected to fall again by the weekend.

AAP maur/jjs/las/jk/gmw/sb

KEYWORD: EASTER PETROL NIGHTLEAD

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