Fed: ACCC checking for oil price collusion

AAP General News (Australia)
04-26-2001
Fed: ACCC checking for oil price collusion

CANBERRA, April 26 AAP - The consumer watchdog is examining petrol price rises in Sydney
and Brisbane and has warned it will act if there is any evidence of collusion by oil companies.

Prime Minister John Howard today called on the Australian Competition and Consumer
Commission (ACCC) to throw the book at oil companies caught colluding on petrol prices,
following jumps in unleaded fuel to as much as $1.08 per litre.

ACCC chairman Allan Fels said if there was any evidence of collusion, "then of course we'd act".

But motorists were warned not to expect lower prices as a result.

Professor Fels said while the ACCC has been successful in court action against oil
companies in the past, it had also lost cases.

"Ampol was fined $3.5 million not so long ago for price fixing," he told ABC Radio.

But the courts require more than just evidence that competitors are charging the same
price, Prof Fels said.

"That in itself is not evidence of a breach of the law.

"There has to be evidence of some kind of unlawful communication, like a phone call
or an email or an agreement between competitors before they'll conclude there's guilt."

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KEYWORD: PETROL ACCC

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