This media release relates directly  to the situation in Tasmania, only in a lot of cases, the cost of trying to compete with the majors would mean a much greater loss to the independants.

They are expecting a public outcry because fuel prices are set to go up again. But independent retailers, who do not have access to fairly priced wholesale supplies often lose on every litre they sell.

“Many independent retailers have been selling at, or below, their buy-price for over a month now. The sums just do not add up for them. For example, on Monday May 19 2008, the wholesale price (Terminal Gate Price) was 144.36 cents per litre (cpl) plus add-on costs of around two to 2.5 cpl for delivery, branding, credit and other charges. This equates to an actual cost for independent retailers of between 146.36 to 146.86 cpl,” VACC Executive Director, David Purchase, said.

“And yet, oil company and supermarket-owned outlets were selling at 139.9 to 140.9 cpl.

“If oil company and supermarket outlets keep their retail prices below the wholesale cost independents have to pay for much longer, even more independent operators will be driven out of business.

“The oil companies, through their supermarket partners, will then achieve their goal of removing independent operators from the market, giving them total market control.

“This looks like predatory pricing to VACC. We would like to know what the ACCC and Fuel Commissioner Pat Walker proposes to do about it.

“The ACCC conceded that there is a lack of competition at the wholesale level in its 2007 Inquiry into Petrol Prices. VACC demands equitable access to fuel at a fair price at the wholesale level for independent operators. Independent service station operators must be allowed to compete fairly.

“If the current predatory pricing regime continues, they will all be driven from the market.
The day the fuel market falls under the total control of the oil companies and their supermarket partners, will be a bad day for motorists, and a bad day for Australia,” Mr Purchase said.