Petrol war sparks fears for small owners

Woolworths yesterday turned up the heat by matching Coles' three new petrol promotions, which included a 40-cent discount on fuel for shoppers who spent more than $300 on groceries.

The offers - which included a 10-cent discount for shoppers who spent more than $100 and 25 cents off for those who spent more than $200 at the supermarkets - will end at midnight tomorrow.

Independent senator Nick Xenophon said the big supermarket chains overcharged for petrol.

"These discounts are proof that the big oil companies and the two major supermarket chains have motorists over a barrel," he said. "My concern is that the real target of these discounts will end up being the independent fuel retailers, who can't use profits from supermarkets to flog off petrol at unrealistic prices and it will further consolidate the market share of the big two."

The Service Stations Association president, Craig Glasby, said the offers were a misuse of market power. "If they did that (offer) for three days every month, I would have to sack two staff," he said. "If it happened every month, we would be in real trouble. This could change the face of the industry in a short time."

Senator Xenophon called on the Australian Competition and Consumer Commission to investigate whether the offers breached the Trade Practices Act.

Australia's petrol commissioner, Joe DiMasi, said that in the past the ACCC had found shopper-docket loyalty schemes were not uncompetitive.

"In general, things that lead to lower prices are good and discounts welcomed," Mr DiMasi said.

"Having said that, we are going to make sure, of course, that there is nothing in this that is anti-competitive or designed to drive out competitors."

Coles spokesman Jim Cooper said: "This isn't about independent retailers, this is about doing what we need to for our customers."

The average price for unleaded fuel in Melbourne was 124.1 cents a litre yesterday, so consumers could potentially pay only 84.1 cents a litre if they spent more than $300.

The last time a Victorian motorist paid that amount was in October 2003, according to motormouth.com.au.

RACV spokesman Michael Case said if motorists were able to take advantage of the offer, there was the potential to make a $60 saving by buying the maximum 150 litres available in the promotion. At 84.1 cents a litre, consumers could save about $18 in a small car and about $28 in a family car.

Consumer advocate Choice urged shoppers to be savvy.

"You have got to hand it to them," spokesman Christopher Zinn said, "it's a brilliant marketing ploy because the hurdle is so high in terms of the $300 spend, and to get the most of this you need to have a four-wheel-drive with twin tanks so you can put 150 litres in it."