Fed; PM attacks oil companies over Anzac Day price rise

AAP General News (Australia)
04-26-2001
Fed; PM attacks oil companies over Anzac Day price rise

By Darrin Barnett

MELBOURNE, April 26 AAP - Prime Minister John Howard today called on the consumer watchdog
to "throw the book" at oil companies if it could prove they colluded to boost petrol prices
for Anzac Day.

Prices in parts of Sydney and Canberra rose to record highs above $1 a litre on Tuesday
night, an action Australian Consumer and Competition Commission (ACCC) chairman Allan
Fels today described as "opportunistic and un-Australian".

Professor Fels said while there was no clear evidence of unlawful collusion, the actions
of the major oil companies - BP, Shell, Mobil and Caltex/Ampol - were unethical.

"The action of the oil companies in ... raising prices for Anzac day was cynical and
opportunistic and un-Australian," he told reporters in Melbourne.

"It's most unusual to raise prices on a Tuesday as part of the cycle, so it was clearly
taking advantage of consumers."

Mr Howard encouraged the ACCC to get to the bottom of the matter.

"I am glad the ACCC is on the case and I would encourage Professor Fels to throw the
book at the oil companies if there has been anything untoward done, if there has been
any collusion," he said.

But oil companies defended their practices, with Caltex chairman Malcolm Irving strongly
denying collusion on petrol prices.

"Let me state categorically it is against the law for oil companies ... to collude
and we certainly don't collude," Mr Irving told a packed Caltex annual general meeting
in Sydney today.

"You know we are not making exorbitant profits.

"To hear those billy goats get up and talk about how we are ripping you (consumers)
off is offensive."

Shell Australia chairman Peter Duncan said the company did not dictate petrol prices
from one central point.

"There are a massive number of entities in our retail business; we operate through
franchisees that are independent and so on," Mr Duncan said.

"....Clearly we influence it by the prices we charge but they are all reacting to the situation."

Mr Duncan said he understood motorists' frustrations with the way petrol prices went
up and down and oil companies did need to be more transparent in explaining their pricing.

Professor Fels said the fall in value of the Australian dollar and rises in the international
price of petrol had been major contributors to the sharp rise petrol prices over the past
year.

AAP db/jlw/las/mo

KEYWORD: PETROL NIGHTLEAD

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