Woolworths fuel discount undertaking varied

1 March 2019

The ACCC has accepted a variation to an undertaking provided by Woolworths in 2013 relating to its shopper docket fuel discount offers, which changes how Woolworths can fund the discounts.

In 2013, after an investigation into the escalating shopper docket fuel discount offers, the ACCC accepted an undertaking from Woolworths to limit the size and scope of fuel discounts linked to supermarket purchases. The undertaking required these discounts to be funded only through Woolworths’ petrol division.

Given the proposed sale of Woolworths’ service stations to EG Group, the ACCC has accepted a variation proposed by Woolworths to vary the undertaking to remove this requirement and allow Woolworths to fund fuel discounts linked to supermarket purchases from outside its petrol division.

The undertaking, as varied, will continue to operate after the sale of Woolworths’ service stations to EG Group and will allow Woolworths to continue to fund the shopper docket fuel discounts it offers to supermarket customers.

Of most importance, fuel discount offers linked to supermarket purchases will remain limited to 4 cents per litre after the variation of the undertaking.

The variation is available on the ACCC’s public register at Woolworths Limited - variation.

Background

In 2012-2013, when supermarket shopper docket fuel discounts of up to 40 cents per litre were on offer, the ACCC investigated whether such large discounts were anti-competitive.

On 6 December 2013, the ACCC accepted court enforceable undertakings from both Woolworths and Coles to limit fuel discounts provided through shopper docket offers. The undertaking limited discounts linked to supermarket purchases to 4 cents per litre.

As part of the sale of Woolworths’ fuel division to EG Group, Woolworths will enter in to a commercial alliance with EG Group so that Woolworths’ fuel discount offers can be redeemed at EG Group’s fuel sites.

Release number: 
28/19
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