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Burmah a
bargain:
Connolly
ACT petrol consumers and rthc
community in general are better*
off because of the entry of Bur
mah Fuels into the market, And
this is backed by Industry Com
mission findings, according to the
ACT Minister for Consumer'AfV
fairs, Terry Connolly. • '
He disputed a claim by Austra
lian National University economi
ics researcher Sandra Navalli
that Burmah would cost Canbcr;
rans $6.4 million over Five years.
Ms Navalli said the price re
duction would save consumers
$19.4 million over Five years, but
this would be offset by $25.8 mil
lion lost through lower rates and
taxes, lower profits for service
station owners and lower capital
gain on new sites.
Mr Connolly said yesterday
that the Industry Commission
had found Burmah's entry had
caused a drop of 3c a litre. This
was a verified $9 million saving-a
year (verified because the 3c a
litre tax raised $9 million).
Over five years, this was $45
million.
Mr Connolly accepted there
had been some loss of prbfiti'
which he said had fallen to the
national average, and a loss, to
the ACT of extra revenue; in
higher prices for new sites.
- CRISPIN HULL'
$