Trevor Veale

Supermarkets may redirect subsidies from fuel to retail

A CONSUMER advocate group has welcomed reports that the major supermarkets may be considering redirecting subsidies from fuel discount dockets to the retail shops.

The reports followed undertakings made last year by Coles and Woolworths to stop subsidising fuel discounts from other parts of their business.

That move was prompted by an Australian Competition and Consumer Commission decision to help ensure consumers were not paying extra at supermarkets to make up for discounted fuel.

Those promises were proposed to start from January 1, and Choice has welcomed the change.

Choice head of media Tom Godfrey said the group had pointed out that the big retailers could redirect the savings to the supermarket shelves.

"We still suggest consumers look past the celebrity spruikers, flashy brands and catchy advertising jingles and read the unit cost of what they are purchasing to ensure they are getting the best deal," he said.



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