AAA calls for action on shopper docket petrol discounts

As shopper docket petrol discounts reached 40 cents per litre -- coincidentally as petrol prices reached new heights -- Australia’s peak motoring body has called on the Federal Government to give the ACCC the powers its needs to better police the industry.

The call for a new inquiry into petrol prices comes a week after the Federal Government announced it would not replace the role of Petrol Commissioner at the consumer watchdog, the Australian Competition and Consumer Commission.

"We’ve had long enough of this pea and thimble trick by the supermarket chains," said the executive director of the Australian Automobile Association, Andrew McKellar.

"Motorists might get a discount at the petrol pump but they end up paying more for groceries. We need the ACCC to properly address this issue and if they haven’t got the necessary powers then it’s up to the government to make sure the ACCC has those powers."

The comments by the AAA come as the ACCC Chairman, Rod Sims, today raised concerns about escalating shopper docket fuel discounts and the likely impact it was having on independent operators.

"Independent service stations are struggling to compete on prices," Mr McKellar said. "Let’s not kid anyone, supermarket chains are not offering fuel discounts as a measure of goodwill or charity, they will be making up the profit elsewhere in their business."

Mr McKellar said discounts of 40 cents per litre or more are "unsustainable in the long term and will drive out retailers not linked to the supermarket chains".

Joe Dimasi was appointed Petrol Commissioner in 2008 but he announced last week that he will not seek reappointment to the ACCC, stepping down from the role in August. The government has said it will not replace him.

"Australian motorists need an effective watchdog at a time when fuel prices are increasing," said Mr McKellar. "Regrettably the appointment of a dedicated 'Petrol Commissioner' appears to have been nothing more than an exercise in political window dressing -- it has been a failed policy experiment."