The consumer watchdog says it proposes allowing the use of Woolworths fuel discounts at BP petrol stations if the energy company is successful in buying the supermarket giant’s service sites.
The Australian Competition and Consumer Commission (ACCC) on Tuesday, August 29, said it had issued a draft decision allowing BP service stations to participate in Woolworths’ Rewards Loyalty Program and accept shopper dockets, as it will likely result in ‘some public benefits’.
In 2013, Woolworths and rival Coles ceased their discount fuel offers following an ACCC investigation into whether they were leading to a substantial reduction in competition in the fuel retail market.
The investigation focused on the long- and short-term effects of the eight cents a liter discount offers, prevalent during 2012-2013, with some fuel retailers complained they could not afford to match the discounts.
“The ACCC considers that fuel discount offers in excess of 4 cents per liter could have longer-term effects on the structure of the retail fuel markets and that the detriments from reduced competition may outweigh any benefits,” ACCC chairman Rod Sims said.
Full Content: Herald Sun
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