Petrol monopoly !

The news that Caltex is to buy 302 Mobil petrol stations is not good news for motorists. It signals the start of a near monopoly.

The acquisition will reduce the major players to just four - Caltex, BP , Woolworths and Wesfarmers/Coles. Three if you consider the present Caltex/Woolworths an already lockstep combination.

The independents are already under pressure. The existing grocery chain people use their gigantic buying power to negotiate a petrol price that allows them to undercut competition - and they use this buying power to funnel car customers into their grocery stores.

The independents are the successors to what used to be called " the corner store ". They sell petrol and " convenience items " - which are mainly groceries that people need in a hurry.
Many years ago grocery shops, butchers, bakers and all manner of food stores only opened 9 am to 6 pm and 9 am to 12 noon Saturday. Outside these hours the only option was the " convenience store ! "

Now the big supermarket chains are open all hours - and all weekend - and some trade 24/7. It is in their interest to drive the 7/11 and 8/11 type operators out of business, because it drives custom back to their stores. An ideal way to do that is to deny them petrol business !

Caltex says that the Mobil move will merely increase their market share from 16% to 22%, but the increase in number from 296 outlets to 598 - taken in combination with the existing Woolworths/Caltex outlets - will increase market share to 44% - and that is enough to give motorists nighmares !

The regulatory authorities will need to think long and hard before they approve that deal. The price of petrol is already being manipulated with totally unwarranted price rises occurring without warning - and without rhyme or reason - and a further contraction of the big players will see more of the same.

And a thought to make car owners stop and shudder ! It's many years since we have had a petrol strike ! Just think what sort of chaos will erupt if the independents are driven from the market and supply is in the hands of the " big three " when that inevitability happens again ?