A success in the Court of Appeal today allows the Commerce Commission's case alleging price fixing by oil companies Shell, Mobil and Caltex to continue in the High Court and awards $6,000 costs to the Commission.

Commission Chairman Peter Allport said that the Commission is delighted with the Court of Appeal's decision and aims to bring the case to trial as soon as possible.

On September 2 last year the Commission filed its statement of claim in the Auckland High Court alleging that the three companies breached the Commerce Act by agreeing to remove a discount off the price of fuel at more than 50 stations in Auckland. The discount was a free car wash for cutomers spending $20 or more on fuel.

Caltex and Mobil applied unsuccessfully to the High Court to have the Commission's case struck out. In the High Court Justice Sian Elias did not accept their arguments that the Commission's statement of claim did not include enough detail and that the alleged arrangement or understanding did not amount to price fixing as described in the Commerce Act.

Caltex and Mobil then appealed Justice Elias's decision to the Court of Appeal. The appeal was heard today, and the Court of Appeal rejected it and held for the reasons set out in Justice Elias's decision.

The case now returns to the High Court and the Commission will continue its action against all three companies.

Media contact: Commerce Act Manager Jo Bransgrove

Phone work (04) 498 0958

Communications Officer Vincent Cholewa

Phone work (04) 498 0920

Commission media releases can be viewed on its web site www.comcom.govt.nz