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BP takeover is no threat says Riordan

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January 13, 2018

A FUEL provider in Echuca-Moama believes there will be little impact on competition if BP’s proposed acquisition of Woolworths’ service stations is given the green light.

A FUEL provider in Echuca-Moama believes there will be little impact on competition if BP’s proposed acquisition of Woolworths’ service stations is given the green light.

The ACCC blocked the proposal after it determined that BP acquiring Woolworths’ service stations would substantially lessen competition in the retail supply of fuel.

But Riordan Fuels managing director Robert Riordan said the proposal wouldn’t increase fuel prices in the twin towns: “Personally, I don’t think there would be a significant impact,” he said.

“There is already heaps of competition.

‘‘You wouldn’t believe how cheap we sell fuel some days.

‘‘Fuel prices in Echuca are already cheaper than Melbourne and many Woolworths’ sites aren’t very big or high profile.”

ACCC Chairman Rod Sims said Woolworths was a vigorous and effective competitor that had an important influence on fuel prices.

“We believe that fuel prices will likely increase at the Woolworths sites if BP acquires them and other retailers would then face less competitive pressure,” he said.

“The bottom line is we consider motorists will pay more, regardless of where they buy fuel if this acquisition goes ahead. Fuel is a major expense for many households, even a small increase in prices has a major impact on drivers.”

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