“The Federal Government, through its proposed Oil Code, is delivering market domination to the oil companies at the expense of the small business independent service station sector,” VACC Executive Director David Purchase said.

“Minister Macfarlane is asking the community and motorists to trust the oil companies not to bleed motorists at the pump once they have the market to themselves.

“By not guaranteeing equitable access to discounts on the wholesale product, even for bulk purchasing, the Federal Government is consigning independent service station operators to the dust-bin.

“Surely the Government can see that in combination with the removal of the cap on the numbers of retail outlets the oil majors can own and operate, allowing them to discount vertically to their own network while at the same time denying equitable access to discounted product to the independent sector, hands the oil majors the petrol market on a platter.

“Do we really want to give complete market domination to the oil companies?

 “If discounting of the wholesale price is to be permitted, then it must not be used as a tool for achieving market domination through vertical control. It must be transparent. Independents, purchasing collectively, must have equitable access to discounted product.

“The Minister might take warning from words in his 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.”

‘The fact of the matter is that rural and regional communities, who are most dependent on a viable independent service station sector, will be hardest hit by these changes.

“Where is the evidence that we should trust the oil companies not to squeeze motorists once they have decimated the independent sector? They are currently using a rising barrel price to increase margins and profitability at the expense of motorists.

“Regional communities in particular should be knocking the doors down to their local Federal Members to insist on changes to the proposed Oil Code. Why should they be forced to pay higher prices for petrol because of inequitable access to discounted wholesale product?” Mr Purchase said.