After reaching agreement with the Australian Competition and Consumer Commission (ACCC) late last year, Informed Sources will soon launch the world’s only industry funded pricing service for Motorists. Not only will Informed Sources continue to provide up to date pricing data to the retailers; continue to expand the free motorist service provided through subsidiary MotorMouth but also make available the same data for app developers and motoring organisations alike. All of this with acceptance from the ACCC and without a cent of contribution from the government.
When recently asked about Informed Sources world wide experience, Alan Cadd, Managing Director of Informed Sources International said, “Plenty of countries, jurisdictions and their governments have endeavoured to bring fuel prices to the people but these have invariably been at a large cost to the public purse and often falling into disrepair over time. Worse still, some of these initiatives will actually impact negatively on competition and raise prices”.
The unique approach of Informed Sources appears to be a win/win/win solution. The fuel retailers get accurate and timely data at a fraction of the cost of conventional collection methods; the community benefits by increased awareness of fuel pricing and the government is assured that the industry is running harmoniously yet competitively. This is achieved at reduced costs for the retailers, and, zero cost for the motorist and the government.
The key to developing such a solution is a good understanding of the economic theories in play and the commercial needs of the industry. Consider the Nobel Prize winner Joseph Stiglitz contributions on Information Asymmetry. Here we see the need for a balance between the information provided to retailers and that available for motorists. The information may not need to be the same but at least balancing in effectiveness. The motorists then have the power to choose between the retailers offers in an informed way. But, that’s not the end of the economic debate. The information flow to retailers needs to be carefully managed to ensure complex Price Signalling and Common Knowledge economic theories are considered and not breached.
Alan continued, “This has been an ongoing pursuit for almost two decades and in some instances we have been waiting for technology and competition understanding in the petrol industry to catch up”.
With several countries in Europe and the Americas already in Informed Sources sights, Alan is keen to explore countries much closer to home. “It’s crazy that we are head quartered in Brisbane, Australia and I keep flying over our nearest neighbours. I see enormous potential to bring this discussion forward with the upcoming APFIF conference” he added.