By Aimee Chanthadavong

Independent Senator Nick Xenophon, together with representatives from Australia’s grocery, retail and motor trades sectors, is calling on the government and the Australian Competition and Consumer Commission (ACCC) to institute an immediate moratorium on fuel discount shopper dockets until the ACCC’s investigation into the effect it has on competition is complete.

The ACCC investigation into shopper dockets – which are mainly offered by Coles and Woolworths – has been underway since July 2012, with ACCC chairman Rod Sims stating last July that: “The ACCC believes this activity is likely to have a negative effect on competition in the petrol industry. Over time, higher petrol prices could be the result.”

This was reiterated again by Sims in July 2013 when he said: “If Coles and Woolworths wish to offer their customers a discount, it should be off supermarket products, not petrol.

“The ACCC believes this activity is likely to have a negative effect on competition in the petrol industry. Over time, higher petrol prices could be the result."
However, Senator Xenophon said it wasn’t just independent fuel outlets being affected, but the independent grocery sector as well.

“When fuel discounts are being offered at 16, 20 and up to 45 cents a litre, which is way below cost price, it’s not just a discount – it’s a way of using massive market power to force smaller retailers out,” he said.

“You might save five dollars at the petrol bowser, but you’re probably paying another ten dollars out of your pocket in the supermarket to pay for it.”

The pledge has been welcomed by the Australian Retailers Association (ARA) who also believes urgent action needs to be taken by the Abbott government.

Russell Zimmerman, spokesperson for the informal coalition of small business groups and executive director of the ARA said retailers are hopeful the ACCC’s investigation will prove the fuel docket scandal is representation of abuse of marketing power.

"We are at an impasse. The cross subsidisation of the chains continues to impact small businesses on a daily basis. The major supermarket chains claim to be doing nothing wrong and acting in the best interests of the consumer,” he said.

"As if the cross subsidisation of fuel was not bad enough, recent offers by the chains are also promoting cross subsidisation of liquor.

"Our only hope is that a moratorium on fuel dockets might level the playing field again so we have a fair chance to compete on product and price, at least until such time as the result of the ACCC's investigation is announced.”

The ACCC said it expects to finalise its investigation early in the New Year.