The Australian Competition and Consumer Commission has announced that it will study LPG pricing in Geelong. This follows concerns expressed about the high levels of Geelong's autogas prices relative to those available in Melbourne and at many locations on the road to Geelong. The RACV also recently called for such a study.
Prior to 1992, autogas users in Geelong used to benefit from discount price cycles, paying prices similar to those available in Melbourne, ACCC Chairman, Professor Allan Fels, said today. For example, surveys show that the average retail price in Geelong for autogas in November 1991 was 21.2 cents per litre, in Melbourne for the same month its was 22 cents per litre.
During most of 1993, while retail prices for autogas in Geelong were relatively stable, average prices remained comparable with average levels in Melbourne. However, in September 1993, retail prices in Geelong jumped about four cents per litre and have since remained relatively stable but at higher levels, well above average prices in Melbourne. Professor Fels noted that the average price in August 1996 in Geelong was 29.9 cents per litre while in Melbourne it was 23.4 cents per litre.
It has been the change in pricing behaviour and the resultant price differences between parts of Melbourne on the way to Geelong that has created most concern with Geelong LPG users, the Chairman said.
The ACCC study will concentrate on competition issues in Geelong, including with respect to any aspects of the Trade Practices Act that are relevant. The views of wholesalers and distributors will be sought as to what impetus to competition used to prevail and why this appears to have fallen with the apparent change in local pricing behaviour, Professor Fels said.
The study will be initiated immediately and the results will be considered by the Commission when they become available.
