Supermarket fuel dockets a con says ACCC

The Victorian Automotive Chamber of Commerce (VACC) has thrown its weight behind a statement from the Australian Competition and Consumer Commission (ACCC) that says shopper dockets are ‘killing off’ independent service stations.

Chairman of the ACCC, Rod Simms, said he was concerned that the practice of offering discounted fuel to supermarket shoppers has resulted in Coles and Woolworths domination of the retail fuel industry. He said that if the duopoly wished to offer its customers a discount, it should be off its own supermarket products.

“While large shopper docket discounts provide short-term benefits to some consumers, the likely harm to other fuel retailers, and therefore to competition and the competitive process for petrol retailing could well be substantial,” Simms explained.

The VACC, which represents more than 5300 small business members, including Service Station and Convenience Store Division members, has welcomed the statement, with VACC Executive Director, David Purchase, saying the warning has come too late for many owner-operators.

“[The] VACC has been warning of this for years,” said Purchase.

“Independent service stations have declined in number in droves and if shopper docket discounts are not stopped there will be no independent fuel retailers left, no effective competition and fuel prices will skyrocket.

“It’s not rocket science, yet it’s been happening right under our noses.”

The VACC representative went on to slam the shopper docket scheme, indicating that any saving made on fuel comes at an increase in grocery prices.

“Shopper docket discounts are a farce,” said Purchase.

“Consumers are led to believe they are getting a bargain [when] in fact, shopper dockets are a con because the discounted fuel is funded by higher grocery prices.

“The last time I looked, Coles and Woolworths were not registered as charitable institutions and I cannot see them giving us something for nothing,” he continued.

Purchase said that the announcement from the ACCC was a watershed message to consumers and called for further investigation into shopper docket schemes by the Federal Government.

“Mr Simms’ comments, along with recent criticism of Coles and Woolworths by Metcash Chief Executive Ian Morrice, feel like a turning point in the debate over shopper docket discounts and market domination by Coles and Woolworths in the retail fuel industry. The penny has finally dropped,” declared Purchase.

“Now we need the Federal Government to intervene and protect consumers and small business independent service stations.

“In addition, the ACCC must be given more powers. Mr Simms has authority to investigate and report, but not take effective action. We all know what’s going on and the time has come to do something about it,” Purchase concluded.

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