Coalition welcomes ACCC rejection of Caltex’s attempted takeover of 302 Mobil service stations

December 2, 2009

Shadow Minister for Competition Policy and Consumer Affairs Luke Hartsuyker today welcomed the ACCC’s decision to reject Caltex’s attempted takeover of 302 Mobil service stations.

The Australian Competition and Consumer Commission announced this afternoon the acquisition by Caltex would substantially lesson competition and their application to take over the stations would be rejected.  Mr Hartsuyker said the Coalition had consistently opposed the sale of the service stations.

“From day one it was very clear the sale of these service stations would have reduced competition in many retail markets,” Mr Hartsuyker said.  “The ACCC had no choice but to make this decision.  After promising the Australian people to put downward pressure on fuel prices at the 2007 election, Kevin Rudd was cornered on this acquisition.  A consolidation of this size in the retail fuel sector would have further strengthened the market power of Caltex and driven more Independents out of business.

“The fact is that Independents are good for competition and good for consumers. So any proposal which weakens their position had to be seriously questioned. In the end it would have been politically unsustainable for Kevin Rudd to allow this buyout to occur.”

Mr Hartsuyker said the Prime Minister had yet to deliver on his commitment to drive down the cost of fuel.  “In the two years since being elected to power the only response we have seen to Kevin Rudd’s election promise has been the failed FuelWatch scheme.  FuelWatch was never going to deliver lower petrol prices and was exposed as a hoax and a fraud. In the end Kevin Rudd has failed to deliver on his promise to drive down fuel prices in the same way that he has failed to fix our public health system.”