"Mobil, as per good business practice, reviews its marketing and business strategies on an ongoing basis, however, we have no plans to withdraw from WA," national retail manager Mr Peter Buchan said.

Mr Buchan was responding to reports in 'The West Australian' newspaper that the oil giant was about to pull out of the State. The newspaper quoted sources in a 'world-wide industry information service'.

Motoring association, the RAC, said any withdrawal would be bad for consumers as BP may be in a position to take control of petrol supply and it was concerned at the effect it might have on prices. "We are very concerned that BP may have too much control in the market," an RAC official said. "It could force up prices by five cents a litre or even more and it could force some service stations to close."