ACCC concerned about escalating shopper docket discounts

Australian Competition and Consumer Commission (ACCC) Chairman Rod Sims has expressed significant and further concern about the escalating shopper docket petrol discounts, now reaching 45 cents per litre in some cases, according to a Media Release from the ACCC.

“The ACCC has previously signalled its concerns about the impact of shopper docket petrol discounts by Coles and Woolworths on the competitive process,” Mr Sims said.

“Our concerns have been intensified by the expanded use of shopper docket and other discounts by both Coles and Woolworths recently. These have varied in level of discount, frequency and duration, and have now reached up to 45 cents per litre.”

“While large shopper docket discounts provide short term benefits to some consumers, the likely harm to other fuel retailers and therefore to competition and the competitive process for petrol retailing could well be substantial,” Mr Sims said.

“Even at the level of eight cents, it would be difficult to see how an unsubsidised fuel retailer could compete on a sustainable basis. Now, the discounts are substantially higher.”

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