An Auckland High Court decision released yesterday evening means that the Commerce Commission's court action against three oil companies, Caltex (NZ) Ltd, Mobil Oil New Zealand Ltd and Shell New Zealand Ltd, will continue.

Commission Acting Chairman Peter Allport said that the Commission filed its action against the companies in September last year. It is alleging that the companies were price fixing and breached the Commerce Act by agreeing to remove a discount off the price of fuel at more than 50 petrol stations in Auckland. The discount was a free car wash for customers spending $20 or more on fuel.

Caltex and Mobil applied to the Court to have the Commission's case struck out. They argued, unsuccessfully, that the Commission's statement of claim does not include enough detail and that the alleged arrangement or understanding does not amount to price fixing as described in the Act.

Mr Allport said the case would now continue through the court process. The Commission aims to have the case come to trial as soon as possible, though a date has not yet been set.

The Act prohibits competitors colluding to fix prices. This includes collusion over discounts, and does not have to be a formal contract - informal arrangements or understandings are also prohibited.

If the Courts find that Caltex, Mobil and Shell did breach the Act, then they can impose fines of up $5 million on each company. They can also impose a wide range of orders and injunctions.

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