Fed: Gov't wants colluded price investigation before Christmas

AAP General News (Australia)
12-03-2009
Fed: Gov't wants colluded price investigation before Christmas

CANBERRA, Dec 3 AAP - The federal government wants the competition watchdog to investigate
before Christmas whether anti-competitive behaviour is pushing up petrol prices.

Consumer Affairs Minister Craig Emerson has written to the Australian Competition and
Consumer Commission asking it to investigate claims that price collusion is taking place
in the petrol price cycle.

The allegations came to light after the commission told Dr Emerson it had uncovered
evidence of "price signalling behaviour".

That evidence is a major reason behind its decision to reject a bid by Caltex to take
over more than 300 Mobil service stations.

"I'm obviously very concerned about that," Dr Emerson told Sky News on Thursday, adding
he wanted the commission to provide him with an interim report before Christmas.

Commission chairman Graeme Samuel says price rises which peak on Thursdays, in what
has become known as the petrol price cycle, amount to "coordinated behaviour".

"The leaders tend to be the major market refiners - Caltex, Mobil and BP," he told ABC Radio.

"All of a sudden there's a price hike, there's a jump of the order of 10, 15, sometimes
even more cents per litre."

Fair trading specialist Frank Zumbo, from the University of New South Wales, has criticised
the government's slow reaction.

"It's a bit rich to raise this issue now in circumstances where the government has
been well aware of this issue for past two years," Professor Zumbo said.

AAP srj/rl/dep

KEYWORD: PETROL

2009 AAP Information Services Pty Limited (AAP) or its Licensors.