ACCC IGNORES PLEAS FOR PETROL PROBE
THE Australian Competition and Consumer Commission ( ACCC) has confirmed it will not investigate Townsville’s fuel prices despite lobbying from local politicians.
ACCC chief operating officer Rayne de Gruchy has written to Herbert MP Cathy O’Toole, saying a market study under way in Cairns would be used to “identify information and conclusions” about Townsville’s market.
“This is ACCC’s fourth market study after Darwin, Launceston and Armidale,” Mr de Gruchy wrote. “These market studies are resource- intensive and take many months to complete, and only a limited number of these studies have been possible.”
Ms O’Toole said the response was “very disappointing”.
“If they can manage to do a market study in Cairns – and they do comment that it’s expensive, but this is not a new argument for Townsville, this has been going on for a very long time – they can do it in Townsville,” she said.
Ms O’Toole said the ACCC needed to look closely at Townsville’s market as fuel companies’ assertions that the prices reflected transport costs and competition “just isn’t ringing true”.
“( Companies say) private markets can drive the price down if you’ve got competition. Well we know that Ayr and Ingham are much cheaper than Townsville,” she said.
In January, unleaded fuel in Ayr was 119c per litre while fuel in Townsville was 129.9c.
Ayr has six petrol stations, while Townsville has 27 to 30.
“They thing that they say to us is, obviously there could be additional costs if the fuel had to be transported, but the reality is it comes into Townsville and it goes to the service stations here, ( then) Ingham and Ayr are further away,” Ms O’Toole said.
Townsville Chamber of Commerce president Troy Popham also slammed the ACCC’s response, and said it was unacceptable that the study would overlook Townsville.
“To take a proper sample size, the ACCC should be investigating major regional hubs and Townsville is the biggest northern Australian city,” he said.
“You’d think they would do some form of work in Townsville before they undertake the final assessment.”
Mr Popham said steep fuel prices were hurting local residents and small and medium businesses in a town that was already struggling economically.
Ms O’Toole said hardly a week went by without a resident contacting her office about fuel prices.
“We’re a community that is struggling, we’ve got high unemployment,” she said.
“I think it’s just another thing to worry about for people here who are struggling.”
She said she would continue to campaign the ACCC to investigate Townsville fuel prices.