ACCC alleges petrol price fixing in country Victoria

The Australian Competition and Consumer Commission has instituted court proceedings against seven companies and seven individuals in the Ballarat region alleging that they entered into and gave effect to arrangements to fix retail petrol prices in breach of the Trade Practices Act 1974.

The ACCC has instituted proceedings against the following companies and individuals:

• Leahy Petroleum Pty Ltd, Leahy Petroleum – Retail Pty Ltd and Mr Robin Palmer

• Triton 2001 Pty Ltd and Mr Anthony Rosenow

• Brumar (Vic) Pty Ltd and Mr Garry Dalton

• Justco Pty Ltd and Mr Justin Bentley

• Apco Service Stations Pty Ltd and Mr Peter Anderson

• J. Chisholm Pty Ltd

• Mr John Gourley and Mr Robert Levick of Balgee Oil (Externally Administered) Pty Ltd.

The ACCC alleges the respondents were involved in the distribution, or retailing, of petrol in the Ballarat area under the Swift, Apco, Mobil, BP, Shell and Ampol/Caltex brands and that they were part of a long-standing price-fixing arrangement between distributors and retailers of petrol.

The ACCC alleges the companies arranged to raise prices by telephoning one another and communicating the size and approximate time of the price rise. It is alleged they then contacted retail sites to implement the rise. It is also alleged that when one became aware that a service station had not raised its price, further calls were made to each other to try to have the site raise its prices.

The ACCC alleges the arrangement pre-dated June 1999 and is seeking penalties for 69 occasions from June 1999 until December 2000 when it alleges the companies effected the arrangement.

The ACCC also alleges that the arrangement involved a number of meetings between competitors, including a meeting in the private home of an employee of Mobil Oil Australia.

The ACCC investigation began over two years in Easter 2000 after receiving complaints from a whistleblower, Mr Trevor Oliver. Just before Easter, Mr Oliver, a Buangor service station owner, alleged that he had been telephoned by his supplier, Leahy Petroleum Pty Ltd, about a rise in retail petrol prices of about 10 cents at 10 a.m. that day. Several weeks after Mr Oliver made his allegations, Leahy Petroleum ceased supplying his business.

The ACCC is seeking:

• penalties

• injunctions

• declarations

• findings of fact

• the implementation of a trade practices compliance program

• costs.

The ACCC has also instituted legal proceedings against Leahy Petroleum and its General Manager, Mr Robin Palmer, in relation to the termination of supply to Mr Oliver. The ACCC alleges that telephone calls to Mr Oliver about prices and the withholding of supply to him contravened the resale price maintenance provisions of the Act. The ACCC is also seeking penalties, injunctions, declarations, findings of fact, the implementation of a trade practices compliance program and costs in relation to this alleged conduct.

A directions hearing for these matters is listed for 14 June 2002 before Justice Merkel in the Federal Court, Melbourne.

Note to media: Professor Fels will be available for any media inquiries at 12 noon at the ACCC Offices, Level 35, 360 Elizabeth Street, Melbourne. Television crews can access the building via the loading dock, off Little Lonsdale Street, near the corner of Elizabeth Street (building policy). Parking is also available.