HELEN POW
    The Sunday Telegraph
    February 12, 2012


DRIVERS are paying more for petrol because supermarkets are jacking up pump prices to protect their profits from fuel discount vouchers.   

Motorists are being duped into thinking they are saving up to 8c a litre but research obtained exclusively by The Sunday Telegraph shows drivers who use the supermarket dockets are getting a fraction of the promised discount.   

And those without vouchers are paying up to 4c a litre more than they should.

"Families are being misled," said Australian Automobile Association managing director Andrew McKellar.   



"Even if you are using one of these shop-a-dockets you are not getting the full face value discount because the supermarkets are pushing up prices and for everyone else you're paying more, full stop."

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Coles and Woolworths doubled their usual 4c per litre petrol voucher between November and January to boost fuel and grocery sales amid their price war.

Those who spent more than $30 in store have until the end of this month to redeem the 8c voucher at the bowser.

But a study of fuel prices by the AAA over the past three months found drivers were being swindled when the double discount applies because the supermarkets inflate the starting price of petrol to lessen the hit to their profits.   

Even motorists who avoid supermarket-linked chains - which now account for almost half the service stations in Australia - are paying up to 2c a litre more when the promotion is running because other petrol retailers follow the supermarkets' lead in raising prices.

"Motorists are paying a higher fuel price every day in their fuel cycle when compared to fuel cycles before the 8c per litre discount," the AAA report said.

"A plausible explanation is the supermarkets changed their pricing policy relative to their competitors during their 8c per litre fuel discount offer to minimise the cost of the promotion."

Petrol retailers' profits went up by a fat 20 per cent during the offer, with gross retail margins rising from 7.6c a litre to 9.1c.

Mr McKellar accused the Australian Competition and Consumer Commission's petrol commissioner, Joe Dimasi, of failing to stop the rip-off. 

"When the regulator is not concerned you've got to wonder if interests of motorists are going to be defended," he said.   

Mr Dimasi told The Sunday Telegraph the ACCC had not investigated whether the 8c a litre discount pushed up prices at the bowser.

An ACCC spokesman said the commission "is currently seeking further information from industry bodies on the influence of discount vouchers within the market."

Coles Express general manager Peter Short denied the supermarket lifted fuel prices to offset the 8c fuel offer. "Fuel pricing is volatile and is determined by a number of factors," he said.

Woolworths' spokeswoman said: "Woolworths is a price follower and our outlets change prices after moves by competitors."

cods wrote on Feb 12^th, 2012 at 7:49am:




The Seppolians have anti-trust laws in place
specifically to stop this sort of thing.

I'd LOVE to see Coles and Woolworths be FORCED
BY LAW to divest themselves of EVERYTHING but
their CORE BUSINESS eg groceries/variety stores.

But that would take a govt with a bit of ticker, that's
not afraid of/owned by big-business interests.

So....not much chance.

Come on what did you all expect.

It was obvious from the start that supermarkets getting involved and discount vouchers were always going to add to the pump price.

Quote:


Crook you do know that the second world war is over don't you? Also man has walked on the moon and the first alleged female has been elected to the post of PM in Australia.

Supermarkets jacking up prices to cover the discount on petrol....how startling is that news.

Crook, keep up will you.

Baronvonrort wrote on Feb 12^th, 2012 at 3:14pm:


Neither have I, but being largely a push bike user I object to my shopping costs subsidising petrol.

Quote:


Quite 

Either do I, and like you Kat I get asked nearly all the time.  I  don't care less about their cheap petrol dockets, or fly buys.  Do most, not all but most of my supermarket shopping at Aldi.  Also I don't use cheap petrol dockets anyway.