Fuel discount above board: ACCC

23rd July 2009

A RECORD fuel discount offer by Australia's supermarket giants has been found to be above board by the consumer watchdog.

AAP

Poll

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

This poll ended on 31 December 2009.

Yes

24%

No

75%

This is not a scientific poll. The results reflect only the opinions of those who chose to participate.

A RECORD fuel discount offer by Australia's supermarket giants has been found to be above board by the consumer watchdog.

The Australian Competition and Consumer Commission (ACCC) was urged to step in last week after Coles and Woolworths promoted new discounts of up to 40 cents a litre of petrol when consumers spent $300 on groceries.

It provoked a consumer frenzy, but independent service stations called foul, accusing the duopoly of trying to drive smaller competitors out of the market.

The ACCC's petrol commissioner Joe Dimasi today said that after close inspection, there was nothing dodgy about the offer.

"We have formed the view that these one-off promotions do not breach the Trade Practices Act," he said.

"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."

Both Coles and Woolworths have not ruled out holding the promotion again.