Australian PM may beef up watchdog power over oil giants

Australian Prime Minister John Howard warned oil companies on Thursday that he would increase the consumer watchdog’s powers if retail petrol rises failed to reflect fluctuations in the world oil market.

The move comes after the Australian Consumer and Competition Commission (ACCC) demanded oil giants lower prices to mirror recent falls in the Singapore benchmark used in Australia.
Howard agreed with ACCC chief Graham Samuel’s criticism that oil companies were quick to lift charges at the bowser when the world price was rising but slow to pass on savings to consumers when it went down.

With the issue gaining prominence in Australia due to a steep rise in prices ahead of an upcoming long weekend, Howard said he and Treasurer Peter Costello were prepared to give the regulator more power over oil companies.

Channel NewsAsia