In a move applauded by the RACT, the move will ensure there is no further reduction of competition in Tasmania.

RACT membership and community general manager Stacey Pendicott said her organisation had expressed concern to the ACCC about the impact of the merger.

“Tasmania experiences higher than average fuel prices than the rest of Australia due to a current lack of competition in the market,” she said.

“The ACCC inquiry into Launceston fuel prices highlighted this issue specifically and concluded that the state required more fuel providers in order to stimulate competition and ultimately provide for a lower fuel price for motorists.”

The development means BP or Woolworths would need to undertake legal action in order to get the decision overturned.

Both companies said they would consider their options in the wake of ACCC’s ruling.

Ms Pennicott said there were a number of locations in Tasmania, including Lindisfarne and Kingston in the state’s south, that were only serviced by Woolworths and BP fuel retailers.  

“These areas would be heavily impacted by the reduced competition if the proposed merger occurred,” she said.

The RACT provided an initial submission to the ACCC in April, and continued to discuss the issue with the competition watchdog during 2017.

The sale was initially announced in 2016.