Big fuel discounts 'unrealistic'

Jennifer Chapman | 15th July 2009

FORTY cents a litre may be a hefty chunk off your weekly petrol bill, but the deal has received mixed reaction on the Fraser Coast.

Mackay Daily Mercury

Poll

Would you spend $300 on groceries for a fuel discount of 40 cents a litre?

FORTY cents a litre may be a hefty chunk off your weekly petrol bill but the deal has received mixed reaction on the Fraser Coast.

Some customers were over the moon with the saving; others were unfazed.

One thing was for sure; a manager of two independent Hervey Bay service stations was less than impressed.

Graham Reis looks after Boat Club Fuel Stop and Great Sandy Straits Fuel Station at Urangan.

He said the Coles and Woolworth offer was unrealistic.

“Their retail price is unrealistically cheaper than the supplied price by oil companies.”

Coles and Woollies were offering petrol discounts of up to 40 cents a litre for people who spend more than $300 on one grocery shop.

After the promotion started on Monday it was slammed by critics.

Some organisations believed it would increase the market share of the two chains, sending independent service stations into financial strife.

There were also questions over the legitimacy of the discount and whether the price of groceries would be increased to compensate it.

Mr Reis said he needn't worry because his clients preferred to support smaller service stations.

“Customers are becoming very anti-Woollies and Coles.

“Forty cents is an unrealistic retail margin, it just doesn't happen.”

Driver Mykel Bray wasn't fazed by the offer and would continue buying petrol at independent stations.

“Coles and Woollies, they're your big multi-nationals; they're not here to make friends.”

Mr Bray believed most people could not afford to spend $300 on groceries and wouldn't qualify for the discount.

“It won't last. It won't change anything especially for pensioners.”

Dundowran resident Susan Osmond, however, was wrapped with the news.

“I think it's a pretty good offer,” she said.

She did have reservations though: “As long as it's the set $300 and they're not hiking everything up or (the deals) only on certain products.”

How it works

• Shoppers who spend more than $300 on one visit at Coles or Woolworths will receive a 40 cents a litre discount on petrol

• If you spend $200 to $300 you will get a 25-cent-a-litre special, spending between $100 to $200 earns 10 cents a litre off

• The deal runs out today but the discounts are valid for another four weeks

• The Australian Competition and Consumer Commission promised to examine the promotion

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Big fuel discounts 'unrealistic' | Fraser Coast News | Local News in Fraser Coast