FuelWatch and the Independents

Apparently, FuelWatch may not happen as it is set to be blocked in the Senate. The Independent Senators are wanting to block it because of affinity with independent petrol retailers:

South Australian Independent Senator Nick Xenophon believes the scheme, which would force retails to lock in and publish their petrol price for the following day, will not improve competition and will also force independent retailers out of business.

So how could this be? Let’s begin by recognising that the reason the independents have been losing share to the chains is because the chains have marketing and brands the independents do not possess. In objecting to FuelWatch what they are saying is that having a prominent government website with only price information which would strip away the branding issue is bad for them. It seems hard to believe.

The alternative could be, of course, that independents do not want price competition and clarity. And why? Because they can charge more on average this way. Now, if FuelWatch isn’t going to improve competition (as the Senator is arguing) then why would it erode the independents’ ability to charge more. There is an inconsistency here.

Basically, you can’t have it both ways. Either FuelWatch is going to help competition and, not surprisingly, all petrol retailers will hate it. Or alternatively, it isn’t, in which case the call to protect independents is vaccuous.

One thought on “FuelWatch and the Independents”

  1. Where is your evidence for the assertion regarding advertising?

    I don’t buy petrol based on brand I buy it based on price & convenience where I am driving.

    I’m not saying the rest of your argument is right or wrong but the first assertion needs to be backed with evidence..

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