VACC, the peak Automotive Industry body in Victoria, has expressed concern that Caltex Australia is to enter into an agreement to buy 302 Mobil service stations sites.
The agreement is now subject of a review by the Australian Competition and Consumer Commission (ACCC) and the Foreign Investment Review Board (FIRB).
“VACC and the Independent Service Station owners have grave concerns about this proposed move,†VACC Executive Director, David Purchase, said.
“On the face of it, Caltex seems to be entering the retail fuel sector. But the reality is Caltex is already active in this market with 748 outlets. Acquiring the Mobil sites will only result in this multinational increasing its presence to some 1050 outlets.
“People forget, and let us hope the ACCC have not, that Caltex has an alliance with fuel retailer’s Woolworths, which equates to about 38 percent of the retail fuel market.
“By acquiring Mobil’s retail segment, Caltex will enjoy around 44 per cent of the market.
“If you take into consideration the Shell/Coles alliance, then, if this move goes through, the lions’ share of the Australia’s retail fuel outlets will be controlled by two oil majors and their supermarket partners.
“VACC and the Independent Service Station owners hope this fact has not gone unnoticed by ACCC. If it is truly concerned about protecting business, then ACCC should block this move. If it is serious about being a consumer watchdog, then ACCC will prevent Caltex’s purchase of Mobil service station sites.
“This move would be bad for consumers and the Industry. Independent Service Stations will not be able to compete with the supermarket retail sites because they do not enjoy any price discounts at the wholesale level, which is controlled by Shell and Caltex. Without the Independents, the motorist will pay more because the supermarkets will be unchecked and able to charge whatever they want at the pump.
“VACC calls on ACCC to stand up and take action. We call on the ACCC to block this move and to send a message to big business that dominance of the market place is unhealthy and not in the best interests of the consumer,†Mr Purchase said.
Source Autonews
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