Motorists Benefit From Increased Fuel Market Competition


The peak national motoring organisation, the Australian Automobile Association (AAA), has labelled an agreement between major supermarkets to stop inflated shopper docket offers as a step in the right direction for fuel market competition.

"The supermarkets have not been providing shopper docket offers as a form of charity but rather as a mechanism to distort the marketplace," AAA Chief Executive Andrew McKellar said.

"Offers of eight, sixteen or up to forty cents per litre have reduced competition and ultimately it is the customer who ends up paying somewhere else," he said.

"This agreement is a step in the right direction and shows the ACCC can achieve results in the interests of consumers," Mr McKellar said.

"However, we do have some concerns about the lack of enforcement of the voluntary agreement," he said.
A survey conducted by the AAA showed 78 per cent of motorists used supermarket shopper dockets but only 42 per cent believed they actually saved them money.

"Motorists are smarter than the supermarkets think and they realise that reducing competition will end up costing them money in the long run," Mr McKellar said.


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