Supermarkets transfer petrol discounts to grocery items

Supermarket giants Coles and Woolworths are transferring the discounts they’re no longer allowed to apply to petrol, instead offering consumers cheaper grocery items.

From 1 January the duopoly has had to stop subsidising fuel discounts from other parts of their businesses, while limiting supermarket-based fuel discounts to four cents a litre. They’re now reallocating the $500 million they spent last year on fuel discounts, offering discounts of up to 20 percent on grocery items.

Consumer group Choice says the move is a win for consumers. “Choice called on the benevolent retail giants to redirect fuel subsidies to groceries, and make 1 January a happy new year for Australian shoppers, says head of media, Tom Godfrey.

“While Coles and Woolies were quick to claim the end of big fuel discounts was a loss for consumers, we pointed out they had every opportunity to redirect these savings to the supermarket shelves and show they are serious about competition for all their customers,” he said.

According to The Land, a Coles spokesman said the discounts were no different to those offered in the past 12 months.

"It would be consistent with what we've been doing for some time," he said.
 

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