AAA welcomes opposition to BP/Woolworths merger

ACCC and AAA agree proposal would be bad news for motorists

woolworths service station

There is a strong argument that supermarket backed/owned service stations and their shopper docket discounts have made life difficult for independent service stations.

But, in this case at least, there is strong support for the status quo to remain, to the potential benefit of motorists.

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Fuel giants, BP, are looking to merge with, or acquire, the nation’s Woolworth Service Stations.

But the proposed move hasn’t been met with enthusiasm by the Australian Competition and Consumer Commission (ACCC).

The ACCC Chairman, Rod Simms, believes BP would be unlikely to pass on the same discounts that Woolworths does and believes that wouldn’t be good news for car owners.

The Australian Automobile Association (AAA) has welcomed the ACCC’s opposition to the plan.

AAA Chief Executive Michael Bradley telling that common sense has prevailed.

“The ACCC analysis of the proposed merger concluded that it would result in less competition in the marketplace, leading to higher fuel prices.

“If BP acquires Woolworths’ sites, a price discounter could be replaced with a price leader, meaning consumers would end up paying more for fuel.

“The AAA congratulates the ACCC on thoroughly considering the impact the proposed merger could have on fuel prices.”

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