The Australian Competition and Consumer Commission has given its approval to the 40c-a-litre petrol discounts launched recently by Coles and Woolworths, saying the discounts do not breach the Trade Practices Act.
The discounts were offered to shoppers who spent over $300 at a Coles and Woolworths in a single transaction between 13 July and 15 July.
Some small fuel retailers had complained that the discounts were so large that they may have stifled competition in the fuel market.
But the ACCC’s petrol commissioner, Joe Dimasi, has dismissed these concerns.
“A one-off promotion of this nature results in a short-term discount for consumers.
For most consumers the discounts will only apply to one weekly or fortnightly shop and to one tank of fuel.”
Another factor which swayed the ACCC was the fact the discounts were matched by Metcash, the grocery wholesaler that stands behind the IGA chain.
“This shows us that other players in the market have the ability to match the short-term competitive pressures of companies such as Coles and Woolworths. This is competition operating in the interests of Australian consumers,” Dimasi said in a statement.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
Comments