The RACT has applauded the Australian Competition & Consumer Commission (ACCC) decision to oppose BP Australia Pty Ltd’s proposed acquisition of Woolworths Limited’s retail service station sites.
The decision will ensure that
there is no further reduction of competition in Tasmania, which was a major
concern raised by the RACT in its submission to the ACCC’s review of the
Stacey Pennicott, RACT Executive
General Manager, Membership & Community, said the RACT had provided
extensive information to the ACCC.
“Tasmania experiences higher than average fuel prices than the rest of
Australia due to a current lack of competition in the market,” Ms Pennicott
“The ACCC enquiry into Launceston fuel prices
highlighted this issue specifically and concluded that the state required more
fuel providers in order to stimulate competition and ultimately provide for a
lower fuel price for motorists.”
Ms Pennicott said there were a
number of locations in Tasmania,
including Lindisfarne and Kingston in southern Tasmania, that were only
serviced by a Woolworths and BP fuel retailer.
“These areas would be heavily impacted by the
reduced competition if the proposed merger occurred,” Ms Pennicott said.
Ms Pennicott said the RACT provided an
initial submission to the ACCC in April, and the RACT had continued to discuss
the issue further with the commission during 2017.
To see the full ACCC decision, click here.