The Australian Competition & Consumer Commission (ACCC) decision announced today in relation to BP Australia Pty Ltd’s proposed acquisition of Woolworths Limited’s retail service station sites has been applauded by the RACT.
The decision to oppose the acquisition will ensure that there is no further reduction of competition in Tasmania.
Stacey Pennicott, executive general manager Membership & Community, said the RACT had provided extensive information to the ACCC, and in particular expressed its concern that the proposed merger would further reduce the level of competition in Tasmania.
“Tasmania experiences higher than average fuel prices than the rest of Australia due to a current lack of competition in the market,” she said.
“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,” she said.
Ms Pennicott said the RACT provided an initial submission to the ACCC in April, and the RACT had continued to discuss the issue with the ACCC during 2017.