The Australian Competition and Consumer Commission (ACCC) will examine private arrangements between petrol retailers and whether major fuel retailers are involved in price fixing which may breach consumer law.
The ACCC is concerned the current arrangement is stifling competition and that consumers are paying for it at the bowser.
The competition watchdog will not comment on its investigation at this point, as former ACCC chairman Allan Fels indicated the inquiry was well overdue.
Each of the oil companies and major supermarkets provide full information about their prices to a business called Informed Sources and in exchange for a fee, they are allowed to see everybody else’s prices. This has long been the object of suspicion as a possible unlawful arrangement leading to price fixing and eliminating the competition.
The ACCC has conducted inquiries into price fixing and collusion before, but this investigation is different aiming to make the system more transparent for consumers.
The Service Stations Association says it will cooperate with the investigation.
