Higher Fuel Prices If Caltex Take over MOBIL

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HIGHER petrol prices are on the cards if Caltex takes over Mobil service stations, the competition watchdog warns.

The Australian Competition and Consumer Commission fears the acquisition, which would boost the number of Caltex service stations by 16 per cent, could lessen competition and give the petrol giant greater control over prices.

The commission issued a list of preliminary concerns, which also offered a rundown of which service stations routinely had the cheapest prices.

Woolworths, which is supplied by Caltex, and 7-Eleven stores got the thumbs up for being on average 0.4 cents per litre cheaper than Mobil sites.

Mobil, in turn, had generally lower prices than Caltex, as did Coles Express stores.

BP wasn't included in the study, which examined prices from 2008 to June 15, 2009, because of incomparable data.

As the worst performer, Caltex rejected the commission's finding, criticising the research and data-collecting methods used.

But the commission showed Mobil and Caltex were usually the first to increase prices at the start of the price cycle, resulting in significantly higher petrol prices for a period usually lasting a few hours.

Caltex, on average, also failed to reduce its prices as quickly, or by as much as its rivals.

Caltex is one of Australia's big four petrol suppliers and wants to buy 302 Mobil stores, lifting its number to 2,128 across the country.

The $300 million acquisition, if it goes ahead, would increase Caltex's majority control of unleaded petrol supply in NSW, South Australia and Queensland, and eclipse Shell as the biggest supplier in Victoria.

"The (commission's) preliminary view is that Caltex's position as the largest wholesale provider in each state is likely to provide it with the ability to increase wholesale market prices," the report read.

Other suppliers had "an incentive" to follow price increases set by Caltex.

The sale would also limit the ability of independents to go elsewhere for fuel should prices get too high, the commission found.

The watchdog will deliver a final verdict on the sale in October but has called for additional submissions from Caltex and other stakeholders in the meantime.

My comment 'why doesn't that suprise me or us !!!"

[XR6Runner]

My comment:

If you care so much about how much you spend on petrol, go LPG.

Otherwise, stop complaining...

[mrbaxr6t]

Originally Posted by XR6Runner

My comment:

If you care so much about how much you spend on petrol, go LPG.

Otherwise, stop complaining...

this is such a cynical view of things, and we should all care how much fuel costs - why you say well -

Everything is moved from point to point through the burning of fossil fuel this includes food which every single one of us consume - a hike in fuel prices equates to a hike in shipping charges on food, this equates to higher prices both at the pump to fuel your car to get you to and from work, and at the checkout when its time to buy some food, this two prong attack increases the cost of living and reduces disposable income which has a knock on effect in the nations' economy - telling people to just convert to lpg solves very little and is quite an uneducated statement - I hope I have opened your eyes a little

[ltd]

Very concerning to say the least.
People shouldn't be blase' about such serious matters that mrbaxr6t has outlined; especially when they're typically the ones to whinge first when it affects them.

[burnz]

are they buying the garages and refinery??
or the garage site.

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Originally Posted by burnz

are they buying the garages and refinery??
or the garage site.

no..just the garages

[PoweredByCNG]

Originally Posted by XR6Runner

If you care so much about how much you spend on petrol, go LPG.

Otherwise, stop complaining...

OMFG, don't you get it?

If Caltex take over Mobil, that's one less brand, one less competitor. That means the price of your LPG will go up to.

Competition is what we need, so down with Caltex taking over Mobil!

Regards,
Dave