VACC, the peak Automotive Industry body in Victoria, would be astonished by comments from ACCC Chairman, Graeme Samuel, in response to the recent petrol price war between Coles and Woolworths, if those comments were in any way intended to embrace small Independent Service Station and Convenience Store outlets.
Speaking on ABC NewsRadio today, Mr Samuel challenged competitors of Coles and Woolworths to match the 40 cents a litre (cpL) discount.
VACC, which represents Victorian Independent Service Station operators, has questioned the motives and timing of the discount. It is also concerned that the fuel promotion will accelerate the demise of the small Independent Service Stations.
“It is small Independent Service Station owners that are at risk from this manipulative 40 cpL docket discount,” VACC Executive Director, David Purchase, said.
“Big supermarkets running big fuel outlets can discount heavily because they have the wherewithal to do so. But small Independent Service Station and Convenience Store owners simply cannot.
“They do not stock the thousands of grocery items to subsidise a 40 cpL discount. Most small Independent Service Station owners are only surviving by the skin of their teeth and this discount price war has the potential to tip many over the edge.
“Contrary to Mr Samuel’s comments, it is impossible for small Independent fuel retailers to ‘match’ this level of discounting and remain in business.
“Instead of focusing on supermarkets and their competitors in the grocery sector, Mr Samuel should be considering the impact on the future of fuel retailing in Australia with two dominant supermarkets being prepared to sell fuel at below cost. He should be asking ‘why are Coles and Woolworths prepared to lose money now?’
“Could it be because there will be a pay-off in the future once competitors and small Independent Service Station owners have been eliminated?”
“While Mr Samuel says ‘the ACCC’s responsibility is towards 21 million Australians’, those very people the ACCC is trying to protect may ultimately lose out when there is little, if any, real competition,” Mr Purchase said.