The consumer watchdog says it proposes allowing the use of Woolworths fuel discounts at BP petrol stations if the energy company is successful in buying the supermarket giant’s service sites.
The Australian Competition and Consumer Commission on Tuesday said it had issued a draft decision allowing BP service stations to participate in Woolworths’ Rewards Loyalty Program and accept shopper dockets, as it will likely result in ‘some public benefits’.
In 2013, Woolworths and rival Coles ceased their discount fuel offers following an ACCC investigation into whether they were leading to a substantial reduction in competition in the fuel retail market.
The investigation focused on the long- and short-term effects of the eight cents a litre discount offers, prevalent during 2012-2013, with some fuel retailers complained they could not afford to match the discounts.
On Tuesday, ACCC chairman Rod Sims said the watchdog would allow the redemption of Woolworths’ dockets at participating BP outlets if the proposed acquisition proceeds and providing the discount does not exceed four cents per litre.
‘We believe giving consumers more opportunities to redeem shopper docket discounts and earn and redeem points through Woolworths’ loyalty program will likely result in some public benefits,’ Mr Sims said.
The ACCC has published a draft determination and is seeking submissions before making its final decision in October.
It said it is also conducting a separate merger review of the proposed acquisition between BP and Woolworths’ network of service stations.
Extracted from Sky News.