News

Time for action on fuel shopper docket discounts

29.7.2013

The peak national motoring organisation, the Australian Automobile Association (AAA), is calling for action to ensure that excessive use of shopper docket discounting is not undermining competition in the retail fuel market.


“Motorists are smarter than the supermarkets think they are and realise that excessive discounting is hurting competition,” AAA Executive Director Andrew McKellar said.


The ACCC Chairman, Mr Rod Sims, has today raised serious concerns about escalating shopper docket fuel discounts and the impact on competition.


“The motoring clubs have been raising these concerns for some time, with clear evidence that independent service stations are struggling to compete on prices,” Mr McKellar said.


“Let’s not kid anyone, supermarkets are not offering fuel discounts as a measure of goodwill or charity, they will be making up the profit elsewhere in their business,” he said.


“Discounts of 40 cents per litre or more are unsustainable in the long term and will drive out retailers not linked to the supermarket chains,” Mr McKellar said.


“The Federal Government must ensure the ACCC has adequate powers to take action on Mr Sims concerns.”
A key policy of the AAA and constituent clubs Demand Better Roads campaign is to get a fairer deal for motorists through effective competition in the retail fuel industry.

Find out more at www.demandbetterroads.com


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