Mobil's decision to sell its fuel terminal in Gladstone, Queensland to Caltex Australia Ltd could potentially harm the imported diesel and petrol market in the area.

This according to the Australian Competition and Consumer Commission (ACCC), who said on Thursday that once finalised, the sale agreement between Caltex and Mobil could reduce the healthy competition existing in Gladstone and eventually hurt the market.

Caltex and Mobil operate their adjacent fuel terminals at Port Gladstone, which both oil companies currently use as storage facilities prior to the fuel's dispatch to other destinations.

A 1997 joint-operation agreement has been overseeing the two firms' smooth use of the terminals until Mobil had decided to divest the asset and picked Caltex to acquire the facility, mostly due to the proximity of its operations to the terminal.

However, the competition watchdog's study on the deal has so far convinced the regulating agency that the sale agreement once consummated "would substantially lessen competition," in the imported petrol and diesel market in Gladstone.

The ACCC also said that the Caltex acquisition of Mobil's facility could prevent the "entry of an independent fuel supplier into the market for the foreseeable future as there were limited opportunities to develop or acquire other terminals."

However, despite the apparent discouragement coming from the new ACCC findings, Mobil said that it would proceed with its plan to sell the fuel terminal and if the regulator deems that a deal with Caltex would be inappropriate at this time, the company would endeavour to look for other parties who might be interested in acquiring the facility.

On its own issued statement, Mobil said that "it is the ACCC's preliminary view that increased competition from entry by independent suppliers could put downward pressure on wholesale prices in the region, leading to better outcomes for petrol and diesel users in the Gladstone region."

The ACCC clarified that its findings were still preliminary and the issue is still open for any submissions and consultations until December 23, with the final decision on the matter set to be handed by the agency on January 27 next year.