PETROL prices will rise and independent operators will be forced out of business under a new ‘Gestapo’ like fuel law, a Wangaratta petrol station operator has warned.

Peter Anderson, who owns Wangaratta’s biggest independent fuel retailing business, APCO, yesterday said he feared the worst from the FuelWatch system Prime Minister Kevin Rudd is hoping will go national by the end of the year.

The government believes motorists could save as much as two cents per litre under the scheme, which requires petrol station operators to notify the public of fuel prices a day in advance.

The system is currently in place in Western Australia and is the brainchild of newly appointed petrol commissioner, Patrick Walker.

Both Mr Walker and Prime Minister Rudd have claimed the scheme will ensure motorists don’t pay any more than they need to at the bowser.

But Mr Anderson doesn’t agree, warning that history shows government regulation increases costs.