Some country petrol consumers can expect lower petrol prices following the settlement of a price-fixing case in the Federal Court today.
Penalties totalling $175,000 have been imposed by the Court on Best Oil Pty Limited for its participation in a Victorian price-fixing arrangement, after Australian Competition and Consumer Commission action.
A Best Oil employee, Mr Michael Danielli, has been penalised $40,000.
The penalties were agreed by the parties and contained in joint submissions to the Federal Court.
The ACCC's Melbourne office had alleged that from December 1994 to February 1995, Best Oil, through Danielli, attempted to induce a Doveton Solo Service Station (supplied by Ampol) to enter into a price fixing arrangement for LPG and petrol. It was alleged Best Oil sought to ensure that the Solo site prices would either match or be above prices posted by the Best Oil site. Best Oil is the operator of a large independent petrol service station located in Doveton.
The Federal Court also restrained Best Oil and Danielli for five years from engaging in the practice of price-fixing.
In addition to the penalties, the company's directors, Mr David Wieland and Mr David Goldberger, have provided the ACCC with undertakings that their group of companies, which includes the newly formed Liberty retail petrol chain, will supply discount petrol into country areas in Victoria and NSW within the next 12 months. They have also undertaken to provide access to their terminal located at Hastings to independent service station operators and to distribute petrol in Tasmania.
The ACCC also brought proceedings against Ampol for its part in the price-fixing conduct resulting in penalties totalling $2.56 million being imposed against Ampol and one of it's area representatives.
ACCC Chairman, Professor Allan Fels, said today that the Commission regarded the breaches by Best Oil as serious.
"However, Best Oil has assisted the ACCC by admitting the breaches of the Act, by approaching the Commission almost immediately after the matter was filed in order to discuss a settlement and as a result have saved the Court - and taxpayers and petrol users - considerable time and money by not going forward to what would have been a substantial trial.
"It is acknowledged that there is no evidence to suggest that the directors of the company had condoned or were aware of the conduct; but rather that it was the conduct of an individual engaged as a commission agent. The conduct alleged in this matter appears to conflict with the group's overall marketing strategy of being a vigorous price discounter.
"Best Oil is yet another organisation which as part of the settlement has undertaken to implement a compliance program and educate its staff with the assistance of the Commission, thereby reducing the risk of breaching the Trade Practices Act."
Professor Fels commented that the ACCC welcomed the undertakings provided by the directors of the company to supply petrol into Mildura and Sale in Victoria and Wagga Wagga and Albury in NSW and also Tasmania.
"The ACCC has recognised for some time that these are country areas that have not been subject to aggressive price competition and the presence of a significant independent should result in a more competitive environment.
"Access to the group's terminal will also encourage other independents to transport and sell petrol into country areas promoting price competition on petroleum products and hence lower prices for consumers, farmers and small business."
Penalties totalling $175,000 have been imposed by the Court on Best Oil Pty Limited for its participation in a Victorian price-fixing arrangement, after Australian Competition and Consumer Commission action.
A Best Oil employee, Mr Michael Danielli, has been penalised $40,000.
The penalties were agreed by the parties and contained in joint submissions to the Federal Court.
The ACCC's Melbourne office had alleged that from December 1994 to February 1995, Best Oil, through Danielli, attempted to induce a Doveton Solo Service Station (supplied by Ampol) to enter into a price fixing arrangement for LPG and petrol. It was alleged Best Oil sought to ensure that the Solo site prices would either match or be above prices posted by the Best Oil site. Best Oil is the operator of a large independent petrol service station located in Doveton.
The Federal Court also restrained Best Oil and Danielli for five years from engaging in the practice of price-fixing.
In addition to the penalties, the company's directors, Mr David Wieland and Mr David Goldberger, have provided the ACCC with undertakings that their group of companies, which includes the newly formed Liberty retail petrol chain, will supply discount petrol into country areas in Victoria and NSW within the next 12 months. They have also undertaken to provide access to their terminal located at Hastings to independent service station operators and to distribute petrol in Tasmania.
The ACCC also brought proceedings against Ampol for its part in the price-fixing conduct resulting in penalties totalling $2.56 million being imposed against Ampol and one of it's area representatives.
ACCC Chairman, Professor Allan Fels, said today that the Commission regarded the breaches by Best Oil as serious.
"However, Best Oil has assisted the ACCC by admitting the breaches of the Act, by approaching the Commission almost immediately after the matter was filed in order to discuss a settlement and as a result have saved the Court - and taxpayers and petrol users - considerable time and money by not going forward to what would have been a substantial trial.
"It is acknowledged that there is no evidence to suggest that the directors of the company had condoned or were aware of the conduct; but rather that it was the conduct of an individual engaged as a commission agent. The conduct alleged in this matter appears to conflict with the group's overall marketing strategy of being a vigorous price discounter.
"Best Oil is yet another organisation which as part of the settlement has undertaken to implement a compliance program and educate its staff with the assistance of the Commission, thereby reducing the risk of breaching the Trade Practices Act."
Professor Fels commented that the ACCC welcomed the undertakings provided by the directors of the company to supply petrol into Mildura and Sale in Victoria and Wagga Wagga and Albury in NSW and also Tasmania.
"The ACCC has recognised for some time that these are country areas that have not been subject to aggressive price competition and the presence of a significant independent should result in a more competitive environment.
"Access to the group's terminal will also encourage other independents to transport and sell petrol into country areas promoting price competition on petroleum products and hence lower prices for consumers, farmers and small business."