Monday, July 13, 2009

Petrol wars

A few weeks ago some petrol station proprietor discounted heavily his petrol become a local hero. Now whole chains are discounting fuel but are being branded as villains:

It was revealed this morning that supermarket giant Coles would offer the largest petrol discount of 40c a litre for shoppers across Australia who spend more than $300 on groceries.

Under the scheme, shoppers spending more than $100 get 10c a litre off, those spending more than $200 save 25c a litre, and customers spending more than $300 get a 40c a litre discount, the Herald Sun reports.

Rival Safeway has since announced that it would match the discounts from 12pm (AEST) today for Victorian customers only.......

Independent Senator Nick Xenophon blasted the offers as proof of "obscene" power in the petrol market.

"If they can offer discounts at this level, surely this is proof that the big oil companies and the supermarket chains are overcharging massively when they aren’t offering discounts," Senator Xenophon said......

It proves no such thing. Retailers do loss making markdowns on selected items all the time. Its an incentive to get people into their shops. The hope to make up the loss on increased sales overall.

When petrol prices were going up people were complaining now that they are going down they are still complaining. You can never please some people.

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