The fuel industry association representing independent service stations looks forward to working with ACCC Chairman Rod Sims to improve the competitive nature of the industry.
The Australasian Convenience and Petroleum Marketers Association (ACAPMA) Chief Executive Officer Nic Moulis says that the appointment of Mr Sims to the petrol monitoring role provides the opportunity for renewed focus on industry competition.
“Under the stewardship of Commissioner Dimasi we have seen many of the petrol myths and confusions held by the wider community addressed and I thank him for his efforts in facilitating this positive advancement in understanding the fuel industry,” said Mr Moulis.
“There are still structural competition issues the ACCC need to address and the opportunity of the Chairman dealing directly with these should not be downplayed.
“Mr Sims comments in the past, which emphasised that some forms of conduct are so detrimental to the competitive process that the ACCC will always assess them as a priority, has me optimistic that he will address the misuse of market power by major retailers.
“Many independent petrol convenience operators struggle to compete against major companies with substantial market share.
“The continued use of discounts, which sell petrol below cost for weeks on end, and the cross subsidy of profits between supermarket, liquor and hardware to support shopper dockets has had a damaging anti-competitive effect on the fuel industry.
“Over the last four years we have seen close to 1,000 independent service stations close their doors.
“The continued loss of small to medium independents from the fuel industry will eventually leave it in the hands of a few multinationals. This is not to the benefit of motorists in the long-term.
“While there are always high public expectations surrounding the price of petrol, in order to truly address this the ACCC must focus on its ability to prosecute damaging competitive behaviour.”
Background:
The Australasian Convenience and Petroleum Marketers Association (ACAPMA) is a not-for-profit employer organisation that has represented the interests of businesses in the petroleum distribution and petrol convenience industries for over 38 years.
As the leading association and national peak body responsible for the development and growth of the petroleum distribution and petrol convenience retail industries, ACAPMA members include over 90 percent of the 120 businesses that operate in petroleum distribution and storage, while representing – through direct ownership, operation or supply – over 3,500 service stations. ACAPMA’s membership profile in the main is independent small-to-medium businesses operating in metropolitan as well as regional and rural Australia.
ACAPMA CEO, Nic Moulis
