The Australian Competition and Consumer Commission has
instituted proceedings in the Federal Court in Sydney
against Renegade Gas Pty Ltd (trading as Supagas NSW, a
privately owned company) and Speed-E-Gas (NSW) Pty Ltd (a
wholly owned subsidiary of Origin Energy Limited).
The ACCC alleges that these companies, through their senior
executives and sales staff, gave effect to an
anti-competitive cartel arrangement which included not
supplying liquid petroleum gas (LPG) cylinders for
forklifts to each others' customers. These customers
were both small and large scale businesses. LPG cylinders
are used to power forklifts in a wide range of logistical
operations across industries to lift and transport goods.
The ACCC alleges that in the Sydney basin between 2006 and
2011, in contravention of the Competition and Consumer
Act (and formerly the Trade Practices Act),
Renegade Gas and Speed-E-Gas gave effect to an
anti-competitive cartel arrangement by, among other ways:
not approaching customers of the other competitor
not offering to supply forklift gas to customers of the
other competitor, and
offering to supply forklift gas to customers of the other
competitor at a price that they knew was not likely to
induce the customer to change suppliers.
This alleged conduct may have resulted in forklift gas
customers of Renegade Gas and Speed-E-Gas not being able to
obtain a more competitive price from the other supplier,
and therefore paying a higher price than they may otherwise
had to pay. Such higher cost to these businesses may have
been passed on to consumers through higher prices that
consumers pay for goods supplied by these businesses.
The ACCC is seeking declarations, injunctions, pecuniary
penalties and costs against Renegade Gas and Speed-E-Gas.
In addition to these remedies, the ACCC is also seeking the
implementation of a trade practices compliance program by
The ACCC is also alleging that current and former senior
executives of both Renegade Gas and Speed-E-Gas implemented
the alleged cartel arrangement between Renegade Gas and
Speed-E-Gas. The ACCC is seeking declarations, injunctions,
banning orders, pecuniary penalties and costs against these
A directions hearing is listed for the Federal Court in
Sydney on 20 September 2012.