MAG MEDIA RELEASE


DATE: 20th March 2008

 

Competition Needed To Bring Down Petrol Prices

More competition in the petrol industry is needed to bring down prices, said the recently appointed Petrol Price Commissioner.

Half of the petrol sold in Australia is through outlets controlled by major retailers Woolworths and Coles. Every week the petrol price   cycles from a low early in the week to a high nearing the weekend.

Expect a big price hike for Easter!

Richard Talbot, long serving NRMA Director & President of the Motorists Action Group (MAG) says:

“The NRMA should enter the petrol retailing industry by opening its own chain of independent petrol stations to provide cheaper petrol for motorists and be the honest broker in the petrol industry.

The NRMA's 2 million members would pay a fair dinkum price at the pump without suffering the   weekly price cycles designed to maximise profits.

The NRMA is a member owned mutual so the savings and profits can be passed on to its 2 million members”

In the 1930's the NRMA Board seriously considered entering the petrol supply industry but the board was split and the move didn't go ahead (refer to On The Road, The NRMA's First 75 Years).

Richard Talbot said:

“The NRMA could sell its $110million, 2% shareholding in IAG and buy petrol stations.  
The IAG shareholding has been a non-performing asset which has cost members tens of millions in lost revenue to retain.

It is a legacy of the poor deal the NRMA Road Service was saddled with when the NRMA was split-up, by the demutualisation of NRMA Insurance in 2000.

Providing members with cheaper petrol would be a positive move in stopping the petrol price rip-off and act as a window on the industry.

It would be a far better way to spend member's funds than on donations to political parties, the recent 60% director's fee rise, director's corporate credit cards, directors overseas trips, spin doctors & consultants.”

For further information contact Richard Talbot on 0438 013 211

or www.mag.org.au