But, Professor Allan Fels, the Chairman of the ACCC, says care must be taken not to bring in a solution which makes average prices, all year, higher. But, most people simply want answers. Well, Tom Murphy is the CEO of the Western Research Institute at Charles Sturt University in New South Wales. He spends a good deal of his professional week examining factors which drive the economy of the regional area served by the university. Fuel costs loom large.
All companies can, in fact, really have collusive behaviour, without actually colluding.
And, that's because of the structure of the industry. They can collude without colluding. Yes, it is a bit extraordinary. But, essentially, the relationship between the oil companies and the service stations, is that the oil companies will charge a set wholesale price. And then, depending upon the market position, the market conditions of that particular market, they'll then give price support afterwards.