Fuel Dockets

Submitted: Saturday, Jan 11, 2014 at 17:31
ThreadID: 105776 Views:2855 Replies:19 FollowUps:18
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The price war is over all the big discounts are finished 04c only I have saved in last 60 day$58.83 last 30 days $41.88 didn,t go far over xmas otherwise would have been greater.Swmbo likes Woolies especially there meat so I have taken advantage of the last minute fight between Coles and Woolies she says it,s lots of cups of coffee me it,s a slab of beer but she might get a coffee after that.
Before I get shot down with the cost at the checkout crew in 20year we have never been asked "Do you want fuel dockets if you don't take them you get a discount here at the checkout" we all pay the same price so the above saving,s are mine so I use them to the best of my ability.I don't agree with the price screwing of our primary producers but all three do it, yes Metcash IGA suppliers /buyers screw as hard as coles and woolies.
Here in Geraldton WA we have Woolies/Coles 6 IGA,s with 3 being owned by one man the IGA,s on an average grocery list are 10/15% dearer then the other 2 .We have 10 servo,s with only 5 owners, one Woolies and one of the private servo,s accepting the Coles vouchers so the 9 independents are doing OK .
I didn't start this to become a bun fight just to state that I,m sorry to see government restricting my choice but we will as stated above swmbo likes Woolies so we will continue to shop there.
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Reply By: Kris and Kev - Saturday, Jan 11, 2014 at 17:53

Saturday, Jan 11, 2014 at 17:53
Good points, but I think you have missed the point why they did it. It has been proven that the actions of Coles and Woolworths has caused the increase in the cost of fuel for everyone. The money you say you have saved is a false saving. Maybe they should have taken this action a while back, but something had to be done. Kevin
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Follow Up By: Idler Chris - Saturday, Jan 11, 2014 at 18:32

Saturday, Jan 11, 2014 at 18:32
Where is the proof that the actions of C & W has caused a fuel increase.
What other people think of me is none of my business.
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Follow Up By: Road Warrior - Saturday, Jan 11, 2014 at 18:39

Saturday, Jan 11, 2014 at 18:39
Simply by pricing smaller and independent grocers and petrol stations out of the market. They can't compete with the sort of discounts Woolies was offering - Christ my Mrs got a 20cpl discount the other week and I went WTF - knowing what the terminal gate price of fuel is they were using one business venture to subsidise the other. Once such a business plan forces all those who can't compete to the wall, then the market is theirs to do as they wish
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Follow Up By: Shaker - Saturday, Jan 11, 2014 at 20:08

Saturday, Jan 11, 2014 at 20:08
Idler Chris, would you feel better if I told you that they did it out of the kindness in their hearts?
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Follow Up By: Idler Chris - Saturday, Jan 11, 2014 at 21:24

Saturday, Jan 11, 2014 at 21:24
No proof just cliches. The inference in some of these posts is that Coles and Woolworths are out to get the independant and then do what they like. What utter hogwash. Firstly, this is illegal and I am sure the ACCC would love to big note themselves with a prosecution against them. If it was happening I bet there would be a whistleblower somewhere. Secondly, if C & W are offering the big discounts as suggested then we the consumer have been getting a good deal for many years. Thirdly C & W are more concerned in competing with each other than to worry about the independants. The greatest risk each of these companies face is each other. Fourthly, as for taking over the market what about the German's with Aldi now well established and growing every day, and the Yanks with Cosco. They have only dipped their toe in the market so far give them 10 years and they should be a major player. Lastly, I brought Metcash shares (owners of IGA) in 2006 and in the time to today the dividend has nearly doubled. So much for C & W trying to force the independants out of the market, I only hope they continue what they are doing and maybe my dividend will quadruple.
Always better to deal with facts and truth rather prejudices. It great that competition thrives. If you do like C & W then don't go to them its a free country you know.
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Follow Up By: Member - PJR (NSW) - Sunday, Jan 12, 2014 at 07:55

Sunday, Jan 12, 2014 at 07:55
Sure Shaker I believe you implicitely. And as the kids say these days NOT!! And Chris - ditto.

We, the customers, are to blame for the way things are now. We go to the big two and look at the low prices for the home brands and just buy them. And the non home brands don't sell enough so they are taken off the shelves. Personally we try to skip the home brands.

But . . . My wife dropped into Coles for a small packet of plain flower last friday.Home brand was less than $1 and the one next to it was over $3. It's bloody hard to ignore. It's not the supermarkets that are to blame. Coles and Woolies are just out to make money for the shareholders. And they do so quite nicely.

But we still buy the A2 milk.

Have a good day

Phil
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Follow Up By: AlbyNSW - Sunday, Jan 12, 2014 at 09:03

Sunday, Jan 12, 2014 at 09:03
Phil your bottom line of "Coles and Woolworths are just out to make money" is the bottom line and they will do it anyway they can. The prices for the biscuits as your example is not of the manufacturers doing it is priced that way on purpose by the retailer, you will notice that the Homebrand products are not just plain packaging anymore they are packaged up in the same manner as the traditional premium brands and the strategy is to create there own premium brands that the consumer will acknowledge. In doing so the bigger picture for them is that they can lift there prices with their "credible own brands" and have cut out the middle man ( Arnotts etc) and maximised their own product.

All non Homebrand type products are charged a fee in the form of a rebate from the retailers to allow them to have them on the shelf and are also dictated to to sell the product to them cheaper for when they run a catalogue advertised special ( the retailer still maintains his margin).
The suppliers also pay a levy rebate to pay for the retailers marketing costs.
Idler Chris there is nothing for the ACCC to investigate, they are not breaking the law just monopolising and bullying their way with the smaller players. There is nothing to whistle blow when your basic strategy is to increase market share from wherever, be it the local independent or the other major competing retailer it is all the same to the bean counters and shareholders
Bottom line for the consumer is that in order to maintain good service and pricing we need to maintain competition in the marketplace
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Follow Up By: Shaker - Sunday, Jan 12, 2014 at 09:10

Sunday, Jan 12, 2014 at 09:10
When the manufacturers, distributors & wholesalers of the $3.00 flour decide to call it a day, do you truly believe that the Homebrand flour will stay at $1.00?
If the supermarkets aren't gouging us everyday, how is it that in towns with an Aldi the supermarket prices are consistently cheaper than towns with no Aldi?

Remember Woolies "loves you"



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Follow Up By: Bazooka - Sunday, Jan 12, 2014 at 11:45

Sunday, Jan 12, 2014 at 11:45
I'm sure the ACCC has data to back up its decision Idler but it's interesting that they've focused on "8c a litre" (http://www.accc.gov.au/media-release/coles-and-woolworths-undertake-to-cease-supermarket-subsidised-fuel-discounts) as some sort of indicator when 8c now is of less value than the 4c a litre discount offered a few years back (taking into account inflation and the fact that that petrol was 70c/l).

In my neck of the woods fuel price discounting has vanished as a result of Coles-Shell/Ww-Caltex dominance in the fuel and grocery markets. Where once we had "competition" we now have "compliance", and a roughly 5-6c a litre average "gouge" (in comparison to what previously applied). Ergo, the 4c/litre has actually been swallowed completely by the two franchises.

I shop wherever prices and service are good and shopping is convenient. That usually means a variety of Coles,Ww, Aldi, IGA (rarely) and local markets. Like New Boy I too took advantage of two 30c/l offers over Xmas - a $45 saving on the max 150l purchase - all without purchasing unnecessary items, so the savings were "real".

Do I expect ANY change to the retail fuel market in my area as a result of the ACCC decision? Not at all. With Shell and BP considering getting out of the retail market Rod Sims will have far bigger problems with competition in the near future. Then again, after his comment on the health and postal markets (which appear to have been based on anecdote not evidence if university data on privatisation costs and benefits can be believed) I have little confidence in his ability to look after either the competition or consumer aspects of bis organisation.
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Follow Up By: olcoolone - Sunday, Jan 12, 2014 at 11:56

Sunday, Jan 12, 2014 at 11:56
What you have to understand is the two main players spend big money on hiring experts in the game of mind control and stimulation, funny as it sounds this is their number one marketing tool.

These companies and experts are not stupid in the way they do things and why they do it...... This is a multi billion dollar game they play with the consumer to increase profit and eventually win with the consumer loosing out in the long term.

Every thing the do has been engineered to get maximum results fir the given task.

If you think they don't do this I'm afraid your one that it has worked on.

Do some research on colours and what they do to the mind and your decision to purchase........ever wounded why that common household brand name item all of a sudden gets moved out of the area it has been for the last 2 years and placed in an area of the store where that produce shouldn't be..... It keeps you in the store longer, you might buy a product from this new area you don't need and have never bought before or you have to ask for assistance so the assistant can sell you another product or place a seed for you to start thinking.

Another thing is to limit stock of a certain product leaving the shelf nearly empty making you think this product must be popular for a reason so you automatically buy it think others have so it must be good, jeezs its nearly sold out...... Remember that sign saying " hurry last 10 left " hate to tell there is no such thing as the last 10 left.

Welcome the the future of mind control and conditioning.

Yes they are screwing with our minds.
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Reply By: olcoolone - Saturday, Jan 11, 2014 at 18:28

Saturday, Jan 11, 2014 at 18:28
Its good its coming to an end BUT nothing will change, when you open the market to competition in an ideal world it results in lower prices......... In this case all it has done is allowed the only two and the biggest by a mile to control for their greed and profit four of life's biggest and most needed commodities being fuel, alcohol, groceries and hardware with a fifth commodity insurance and the sixth being pharmaceuticals on their target.

A country that only has two retailers who sell everything needed in day to day life does not make it competitive.

A largish shopping centre 10 minutes from us has two large Coles stores in it with in 3 minutes walking distance from each other, all this to reduce competition by not allowing another brand in...... So much for anti competitive laws and regulations.

For the last 8 months we have been using Aussie Farmers Direct for 95% of our food, brilliant quality, hassle free and in most cases cheaper then Coles and Woolies plus most of their produce is locally sourced..... For every thing else we use a locally owned Foodland and then occasionally the other two.

Greed is not good for anyone, even the share and stake holders.
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Reply By: Member - Jack - Saturday, Jan 11, 2014 at 18:52

Saturday, Jan 11, 2014 at 18:52
I'm a bit bemused by all this. The original argument was to protect the independent operators who could not compete with the prices on offer from the majors. But the independent operators did not keep fuel prices down. They admitted they could not compete. So why protect those that cannot compete?

I shop in the major supermarkets, and where I could, saved on my fuel costs using the card, especially when travelling. Up to 18 cents per litre. More on special promotions. But conversely, when buying fuel locally I use either of two independents because I like the people.

This is a case of where we are, once again, completely over-governed, with gutless politicians swinging like wheat in the wind to appease any minority that will give them a positive headline.

I'm quite disillusioned with what we have leading our country and state. Quite frankly, we just don't seem to have enough grassy knolls :)

Rant ends ... time for a nice wine.

Jack
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Follow Up By: Steve M1 (NSW) - Saturday, Jan 11, 2014 at 23:05

Saturday, Jan 11, 2014 at 23:05
Corrupt and self-serving politicians, Coles - Woolies, Caltex-Shell, Bunnings-Masters monopolies, cctv, speed "safety" cameras and cops hiding in bushes etc etc .....this must've been what Soviet Russia was like.
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Reply By: Lyn W3 - Saturday, Jan 11, 2014 at 23:16

Saturday, Jan 11, 2014 at 23:16
I filled up with Diesel at the new Costco Sore at Crossroads (near Liverpool Sydney) at Xmas and it was 22c cheaper than Woolies. The new store in Brisbane should be open in a couple of months.
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Reply By: Member - KeithB - Sunday, Jan 12, 2014 at 00:39

Sunday, Jan 12, 2014 at 00:39
I publish a trade magazine in the industry and I can promise that Coles and Woolworths aren't so much competing against each other as they are going after operators in other retail channels. They tried pharmacy and failed. But now they pretty much dominate liquor, pubs, poker machines, hardware, fresh meat and greens and jointly control 80% of the Australian dry grocery market as well as 50% of the retail fuel market. In no other country would this be allowed to happen.

This came to pass after John Howard's government relaxed the Trade Practices legislation governing excessive market power. He was conned. And so were we.

Yet our groceries are expensive compared to similar countries overseas. People from overseas arriving here to work in the trade are amazed at the high wholesale and retail profit margins here and openly refer to Australia as "Treasure Island".

Try buying groceries in New Zealand. You get the same stuff, from a smaller independent supermarket, for less money and your groceries are put in bag for by extra staff at the checkout. At least that was the case when I last shopped there two years ago.

IGA, supplied by Metcash, can't get the same prices because Metcash does not have the same grocery volume or enough muscle to bully suppliers. Some of the supermarket discounts, like milk, are genuine and came after the milk processors dropped their pants for the supermarkets, selling milk to them at cost. So the milk processors make it up by overcharging the smaller independent stores.

The same goes for products on promotion, where other stores, like corner stores and independent liquor stores actually go in and buy their stock from the supermarkets, because their own suppliers cannot compete when these items are on special. 15% of the stock in an average metro corner store is sourced from a supermarket. In the bush it's 25%. 87% of independent local stores buy soft drinks from supermarkets. How can that be right?

Supermarket specials hide the fact that everything else is overpriced. A big fuel discount is funded by overpriced groceries. That's why the system is broken and requires some remedial action if consumers are ever going to get a fair go.

Keith (My rave for the day)

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Follow Up By: Member - Jack - Sunday, Jan 12, 2014 at 08:24

Sunday, Jan 12, 2014 at 08:24
You are spot on with the milk. I live in the Lower Hunter Valley and buy Udder Farm milk for which I pay $3.80 for two litres. I can get it for $2 at a supermarket. So why pay the extra?

I have to shake the container to get the cream out of the way before I can pour it. And I buy the light version of the milk.

The milk is yellow, not deathly white. And the dairy 'heavies' try to make things difficult for him, including regular contacts from them to the NSW Food Authority, and having their people out in the early morning checking to make sure he is not using 'their' crates. (He uses those foldups that you can buy from Bunnings).

So much for living in a free country. And John Howard was certainly the monopolists friend. I puke every time I see him jetting overseas to pick up another award.

Jack

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Reply By: howesy - Sunday, Jan 12, 2014 at 07:00

Sunday, Jan 12, 2014 at 07:00
The average fill for most people is 50L which at 4cents a litre equates to $2,,,apart from the fact that 2 bucks wont even buy a drink (rather get a free drink with every fill),,,do you really think that 2 bucks wasnt more than compensated for in your grocery bill?
I never use dockets and shop at Franklins saving more on my groceries compared to wollies prices than any docket would give me.
My son works for wollies they are tight fisted R-solariums who wont cough up anything unless they benefit in some way. You are paying more in the end.
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Reply By: Narrabrisparky - Sunday, Jan 12, 2014 at 07:23

Sunday, Jan 12, 2014 at 07:23
I got 40cents a lt off yesterday with Coles/Shell in Inverell. Quiet handy when you put in the max 150lts

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Follow Up By: Echucan Bob - Sunday, Jan 12, 2014 at 08:04

Sunday, Jan 12, 2014 at 08:04
But how much extra fuel/wear and tear does driving around all those extra kilograms of fuel cost?
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Follow Up By: Varmint - Sunday, Jan 12, 2014 at 08:35

Sunday, Jan 12, 2014 at 08:35
If Coles and Woolies are so generous giving up to 40 c/l off how come they are still making a record profit every year. What you get off your fuel you pay somewhere else in the store. Nothing is free
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Follow Up By: Hunjy100 - Monday, Jan 13, 2014 at 15:18

Monday, Jan 13, 2014 at 15:18
we were regularly getting 30-40-50 cents/litre off with coles in 2013 with every fill 150 litres $45-$60-$75 in savings I have saved around $600 in 2013 so I have to be in front at least for last year.
It made having a LRT very viable.

Cheers Mal
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Reply By: Michael ( Moss Vale NSW) - Sunday, Jan 12, 2014 at 09:26

Sunday, Jan 12, 2014 at 09:26
I support my local servo/corner store when on at home, he is a 150 metres away. He is always 5 cents cheaper all the time compared to the bigger names. So hopefully if all the locals support him, he will be there when I need him for other things he sells. He also employs a couple of guys in their 30s and run the operation 24/7. Otherwise if we use shopper dockets elsewhere, the station will end up a boarded up eyesore covered in graffiti ! Michael
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Reply By: Steve M1 (NSW) - Sunday, Jan 12, 2014 at 10:07

Sunday, Jan 12, 2014 at 10:07
As far as I understand it, Coles have cut back from 8c to 4c shopper dockets. I doubt you'd be saving anything here now.

They even cut back the flybuys deal where you could "buy" a further 10c discount with your flybuys points. I don't see how the ACCC can find that anti-competitive as it is really not much different than buying a food mixer with your points.

Also, I have never seen anything like 40c discounts posters have mentioned here.
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Follow Up By: Member - Frank P (NSW) - Sunday, Jan 12, 2014 at 10:59

Sunday, Jan 12, 2014 at 10:59
Some of the high discounts were offered to targetted loyalty card holders and a few were offered as paper dockets.

I took them up on a 45c fuel offer which coincided with a refill for my Prado. 150 x 45 = $67.50 discount. The console operator blanched.

At 4c a litre max discount now I'm not going to bother chasing discounts. I'll buy fuel as and when I need it from an independent if there is one, otherwise first servo I see.

Cheers
FrankP

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Reply By: lindsay - Sunday, Jan 12, 2014 at 10:29

Sunday, Jan 12, 2014 at 10:29
I and my family own an independent agricultural business, we have been approached by the two big ones, who wanted to get into bed with us and promised all sorts of support. When we declined their offers, they said that they were prepared to buy 30% of business in the area and did not care if they made any money and someone would bleed to death, they then said that when we were gone they would then just put their prices up.
Since then one of them is in financial trouble with their share price fallen through the floor and we are still making a profit even if a bit less but we are still here. They are all the same and will cross subsidise one area to gain market share in another.

I can remember a survey a few years age when not all grocery stores had fuel dockets. The survey group bought the same items from the same company at stores that had fuel dockets and ones that did not. There was a difference of $7.00 between the stores that had fuel dockets and the ones that didn't. So your 4 cents would not be a discount until after you bought 175 litres of fuel. But thats marketing.
Lindsay.
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Reply By: Racey - Sunday, Jan 12, 2014 at 10:38

Sunday, Jan 12, 2014 at 10:38
Someone in the grocery trade recently told me, that for every dollar you spend Coles (Westfarmers) and Woollies get 70 cents. Competition ??? I don't think.
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Follow Up By: TTTSA - Monday, Jan 13, 2014 at 17:47

Monday, Jan 13, 2014 at 17:47
I worked at Coles 30yrs ago, probably not much relevance to now but real profit back then was in the order of 0.7c per dollar spent.
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Follow Up By: AlbyNSW - Monday, Jan 13, 2014 at 18:12

Monday, Jan 13, 2014 at 18:12
Racey that can be a very misleading statement, is that 70 cents gross or nett?
There markup on product would need to be substantial to cover their enormous infastructure costs and wages.
If their nett profits was in the order of 70% small business could easily undercut them with their lower running costs
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Reply By: The Bantam - Sunday, Jan 12, 2014 at 10:45

Sunday, Jan 12, 2014 at 10:45
As has been said, its is these large conglomerates business, to DOMINATE the market in any area thay trade.

They want to be THE dominate player or one of no more than two or three dominat players....in an economy as small as ours it takes government regulation to ensure there remain three or more major players in a given market.

Their desire for dominance goes further then the wider market, they want a dominant share of your total personal spend.....there are statistics generated to calculate this.

Wesfarmers for examle.....owners of Coles.
Owns
Coles and everything that spins from it, that is BILO, Kmart, Target and their associated business.

Associated with that is the Alcahol business, that includes 1st choice liquor, vintage sellers, liquorland 810 liquor outlets in all and over 92 hotels....in some states it has to own the hotels to operate the stand alone liquor stores.....Coles has been critisies in the business press for not being agressive enough in it liquor business)

In the hardware and industrial market it own Bunnings ( that directly or indirectly concentrated 3 major chains), Blackwoods, Bulivants, Protector Allsafe, safety source, total fasteners, Packaging house and sundry subsiduary businesses

While in the indistrial area they have a variety of interests in chemical production and own one of the two dominant industrail gas suppliers Air Liquid, as well as Kleen heat gass.

In addition they also own, Harris Technology ( computers), Howard smith ( hardware distribution),Katies fashon, Loyalty Pacific ( a loyalty programe compay that adminsiters flybuys among others), Tyremasters and world for kids....among others.

In most areas they are dominant players not only do they controll a large slab of the retail or trade market , but they have a dominant share of the distribution...so smaller competitors have to buy from them.

So they are well and truly able to manipulate price and take with one hand while givveing with the other.

AND some people think they are great because they throw a few crumbs in the way of fue l discount vouchers.

We are only a few steps away from "owing our souls to the company store."

cheers
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Reply By: Member -Pinko (NSW) - Sunday, Jan 12, 2014 at 10:51

Sunday, Jan 12, 2014 at 10:51
This is similar to the debate about solar panels on the roof.
I suggest we (all those that have them) go out and switch them off at midday and watch what happens.
Like wise Woolies and Coles close down the shops on wednesday arvo and open up 10 am saturday ?
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Reply By: Member - John and Lynne - Sunday, Jan 12, 2014 at 11:08

Sunday, Jan 12, 2014 at 11:08
Fuel discounts and "Specials" at the big two supermarkets are an illusion. They bank on us simple consumers being thrilled with a few cents "saved" on one item and assume we won't spend the effort to really check on their prices. I have started to follow prices in my local Coles a bit. It is common for the widely promoted "giant economy" or 2kg pack to actually cost more than two 1kg packs but you see people happily grabbing the 2kg packs and enjoying their "bargain". Then there are the items that quietly go up for a couple of weeks so the can come DOWN DOWN next week to where they were! As well as price manipulation these places promote all sorts of junk that we don't really need to buy - Wet Floor Wipes! Really! It is so easy to spend money on stuff you can easily do without!
I find that when I shop at my medium sized local IGA and do without a fuel docket I can easily come out in front. Also I never buy fruit and veg or meat in any supermarket unless I am in a town where the big two have killed off everyone else - and then they charge like wounded bulls!
As you gather supermarkets are becoming one of my hobby horses! Lynne
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Reply By: allein m - Sunday, Jan 12, 2014 at 11:52

Sunday, Jan 12, 2014 at 11:52
I am in a town where the big two have killed off everyone else


yes i am in the same situation here in Broken Hill in my ten years here i have seen 4 or 5 servos gone and a lot of small shops

Linsays fuel next to the water board the other day were asking $161 much dearer than coles or woolie

but i do vaguely r ember the days when some one filled the car up for you and when they went to self serve I was told to expect substantial savings well i am still waiting for that
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Reply By: Kris and Kev - Sunday, Jan 12, 2014 at 13:55

Sunday, Jan 12, 2014 at 13:55
If the two main players are so detrimental to competition, and I think they are, why will no government take them on? Maybe it is partly because all of our super funds have shares in the two. If decisions are made that impact on their profits too much, your super earnings decline. That means less in retirement. Less travel around this great country! Would we all be happy with that? Or would the resulting competition bring the cost of living down thereby making the true value of our super better? What if the resulting competition did not bring about lower costs to the consumer? Glad I don’t have to make these decisions. I just shop where I can get the best value and ease of shopping. Mind you I don’t get my fuel via shopper dockets, just a personal choice. Kevin
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Reply By: Member - Phil G (SA) - Sunday, Jan 12, 2014 at 14:21

Sunday, Jan 12, 2014 at 14:21
About 4 years ago, on Marion Rd Richmond, Woolworths built a new servo bang next to an independent servo. For the first year they traded, they discounted lower than any other fuel station in Adelaide until that independent was forced to close. Once the independent closed, they cranked their fuel price back up. That's not competition, its picking off the opposition one by one.

Since then, we no longer buy food or fuel from Woolworths or Coles.

Foodland and BP get our business - BP has the higher cetane diesel as well.
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Reply By: Member - KeithB - Sunday, Jan 12, 2014 at 14:42

Sunday, Jan 12, 2014 at 14:42
Everyone wants to get the best possible value for the family dollar. You can't blame the customer for that.

But I think there is a case for the Coles and Woolwoths grocery duopoly to be broken up. Start by separating the wholesale and retail operations into two separate public companies. With Metcash, that would give us three major national independent wholesalers rather than one.

That way independent retailers could shop around for the best wholesale pricing and the retail majors would lose their ability to strong arm suppliers. Mind you, they'd probably start asking for rebates and extra fees even more than they do now. But at least it might be a step towards a level playing field and more transparent pricing - provided that there were rules in place to prevent supermarket rorts. This has happened in other industries in the USA with their anti-trust legislation. But I doubt whether we have the necessary political guts to do it here.

When supermarkets started selling fuel in the USA, every supermarket fuel outlet resulted in the closure of nine independent service stations. For the last 20 years or more, it has been the independent servos in Australia that have kept retail fuel prices competitive. Servo numbers in Australia have dropped from about 20,000 (selling multiple brands) forty years ago to about 6,000, now which may not have been a bad thing.

Half a dozen big companies (Esso, Golden Fleece, Total and so on) have left the market and now some others are looking a pulling up stumps as well. By world standards all of the Australian refineries are small scale almost backyard operations, which cannot hope to compete with imported fuel in the longer term. Plenty have been closed down.

Now Trafigura, a major multinational fuel shipper, is buying up a lot of chains of independent service station sin Australia. What that will do for retail pricing is anyone's guess. At the moment, it seems that Coles and Woolworths are actually keeping fuel prices UP which, in spite of shopper dockets, is allowing he independents to compete.

If Coles and Woolworths decided to put on a protracted price war in the retail fuel market, there is little doubt that they could force maybe 3,000 of Australia's 6,000-odd servos out of business. That's how much power they have. It scares me.

Keith
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Reply By: Shaker - Monday, Jan 13, 2014 at 16:50

Monday, Jan 13, 2014 at 16:50
There are two ways that the supermarkets can put it to the consumer ......
Spend $30.00 in our other business & save 8 cents a litre on your fuel,
OR,
If you don't buy your groceries from us, we will make you pay 8 cents too much for your fuel!

AnswerID: 524457

Follow Up By: Member - John and Lynne - Monday, Jan 13, 2014 at 21:23

Monday, Jan 13, 2014 at 21:23
But don't forget the third line -
When you buy your groceries from us you will, of course, be paying more for our surcharges on those groceries you buy than you save on fuel.

It really does work out cheaper to just buy your groceries, meat and vegetables elsewhere and ignore the fuel so-called discounts! Lynne
John & Lynne

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