HORSHAM will have one less petrol retailer if a deal goes through for Woolworths to sell its stations to BP for $1.8 billion.
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The supermarket giant confirmed on Wednesday that it would sell its 527 petrol stations to focus on its core food and groceries business.
If the Australian Competition and Consumer Commission approves the deal, Horsham will end up with three major fuel retailers instead of four.
RACV fuel spokesman Michael Case said said it was too early to tell what effect the sale might have on prices.
“It’s just about impossible to say what might happen to prices as this was just announced, let alone what might happen in one regional area like Horsham and the Wimmera,” he said.
“It’s worth noting that the competition commission and the Foreign Investment Review Board will both have to look at the deal and approve it, which could take 12 months.
“The effect on prices and competition will be looked at by the commission.”
According to the RACV, Horsham had the 12th most expensive fuel out of 29 regional centres with an average unleaded price of 123.9 cents per litre over the past seven days.
Under the terms of the deal, Woolworths Rewards members will be able to redeem petrol discount vouchers with BP for the next 10 years.
Mr Case said the discount scheme’s guaranteed future could be good for fuel buyers
“The four-cent discounts will continue and may even expand to more BP stations, which might be an advantage for drivers,” he said.
”Of course, with discounts the most important thing is the original price.”
Drivers in the Wimmera have been complaining about the disparity in rural, regional and metropolitan fuel prices for years.