By Trisha Harris 

Coles has told C&I Week it “does not comment on petrol prices” amid allegations the company is charging two to three cents higher than average market prices at its Coles Express outlets.

In a report published by Fairfax Media earlier this week it is alleged that the additional profit margins are being used to bolster earnings as the company reduces prices in other areas of its business such as Coles food and liquor.

However ACCC chairman, Rod Sims, said the ACCC – while it will keep a “close eye” on such matters – needs to establish whether Coles’ above market pricing was a short term or long term strategy and analyse the response from competitors.

In a market characterised by falling petrol prices, Mr Sims said: “There’s some sense that rather than reducing petrol prices they are, if anything, doing the reverse at the moment”.

Read more here.

This story first appeared in Convenience and Impulse Retailing.