“The Federal Government’s proposed Oil Code will deliver the Australian market into the arms of the oil companies and the Coles/Woolworths big business duopoly,” VACC Executive Director David Purchase said.

“It will decimate the independent sector, and concentrate the market into powerful oil company interests.”

“Do we really want to give complete market domination to the oil companies? Because that is what will ultimately happen,” Mr Purchase said.

“When have consumers ever benefited from concentration of market power? As the two-airline policy showed, putting the market in the hands of two or three powerful interests diminishes competition and pushes prices up.”

“While it is clearly not the intent of the legislation, this Oil Code, in not guaranteeing a ‘pristine Terminal Gate Price (TGP)’ as requested by all peak industry bodies representing medium and small business service station operators, and in denying equitable access by independents to discounted product (even when purchasing collectively), will force them from the market.

“If discounting of the TGP is to be permitted, then it must be transparent. Independents, purchasing collectively, must have equitable access to discounted product.

“The new Oil Code makes it easier for total vertical control of the market by oil companies: from base resource, to the refinery, to the petrol station, to motorists’ tanks – they’ll control every part of it.

“And once the oil companies and their powerful partners have rid the market of competition, then they can – and will – bleed motorists at the pump.

“It is astonishing that motorists’ groups such as RACV and NRMA have not woken up to this. It is their constituency, the motoring public, who will pay for this folly.

“In this, consumers might take warning from words in the Minister’s own Explanatory Memorandum (Petroleum Retail Legislation Repeal Bill 2006): “Indeed, the ACCC found that, in general, it is the independent chains rather than the oil majors or their franchisees that lead market prices down.

‘This Oil Code is a disaster for independents and a disaster for regional and rural communities who are most dependent on the independent service station sector,” Mr Purchase said.