NRMA Joins Forces With Petrol Warriors

Author: NRMA MediaDate: 29 October 2008

The NRMA took its campaign for fairer petrol prices up a level, joining forces with independent service station owners Maria and Elia El-Khoury to call for more powers for the ACCC and fairer competition in the market.

The NRMA today announced a series of changes to the Trade Practices Act that it would be proposing to the Federal Government, which would make it harder for oil companies to rip Australians off and squeeze independent petrol station owners out of the market.

The NRMA's proposed changes to the Trade Practices Act and new powers to the Petrol Commissioner aim to:

• Strengthen the Act's definition of collusion to make it easier to prosecute oil giants.
• Force the oil companies to provide more information about pricing to the ACCC.
• Ensure that any differences in prices charged to petrol stations can be justified.
• Impose restrictions on large oil companies from acquiring more petrol stations.

The NRMA will also soon announce further proposals to strengthen the Petrol commissioner's powers so that he can crack down on Big Oil if they are found to be overinflating their profit margins.

NRMA Director Gary Punch said the NRMA backed the El-Khourys' efforts to bring the unfair practices in the petrol industry to light, after she sold petrol at less than $1 per litre in protest over the unfairness in the petrol industry.

"Under the Trade Practices Act the ACCC needs to prove that the oil companies have an agreement on what each other are charging for fuel - this makes it extremely difficult for the ACCC to mount a successful case against the oil companies," Mr Punch said.

"It is too hard to catch them out in the act of price collusion."

Mr Punch said the tougher laws would force petrol wholesalers to have to explain why they are selling petrol cheaper to some retailers than others.

"One of the biggest challenges facing independent retailers like the El-Khourys' business is that they are forced to buy their petrol from their competitors - the big oil companies," Mr Punch said.

"These oil giants are selling petrol to their affiliated service stations at much cheaper prices than independents, making it impossible for them to effectively compete.

"If the Government adopts NRMA's recommendations it will make it easier for the El-Khourys and others to compete, will give the ACCC greater powers to find oil majors are colluding and ensure a fairer and more transparent petrol industry for all Australian motorists."

Mr Punch said the recent brave stand by the El-Khourys, taken at great financial cost to their small business, showed just how desperate things had become.

"The Australian Government has long said that if the Petrol Commissioner needed more powers all he would have to do is ask - this hasn't happened so the NRMA is making the request on the Commissioner’s behalf," Mr Punch said.

"For too long the petrol companies have been ripping Australian motorists off at the bowser and making it impossible for independent service station owners to compete on price.

"The Government can either make the necessary tough decisions today to bring transparency and fairness to the industry, or be forced to explain to the electorate at the next Federal Election why they failed to act."