√Coles Express 4 cent shopper dockets to continue despite sale of service stations

A multimillion-dollar deal will result in Viva Energy becoming Australia’s largest fuel retailer, as Coles bows out of the petrol business after almost 20 years. So, what does this mean for petrol prices?

After almost two decades in the fuel business and establishing a reputation as one of the most expensive petrol providers in the nation, Coles has announced it is selling its network of convenience stores to Viva Energy – the operator and supplier of Shell products in Australia – in a deal worth $300 million.

Despite the change, Viva says Coles will continue to supply the convenience stores with basic grocery products – and the four cents per litre fuel discount dockets and Flybuys loyalty program are set to remain.

The 4 cents per-litre discount – available after a minimum spend of $30 in Coles supermarkets – pales in comparison to the upcoming fuel excise reversion.

The newly-elected Federal Government is set to reinstate the missing half of the fuel excise that was temporarily wiped by the previous administration in the lead-up to the election amid skyrocketing petrol prices.

The missing 24.3 cents per litre (including GST) levy will return from Thursday 29 September 2022.

Meantime, industry analysts are unsure what the Viva takeover will do to petrol prices, even once adjusted for the full fuel excise.

Research by Australia’s top consumer watchdog found Coles Express fuel stations were for many years the dearest outlets.

Reports by the Australian Competition and Consumer Commission (ACCC) found Coles Express was the most expensive fuel retailer in 2017, 2018, and 2019, with BP taking the title for 2020, while independent service stations were regularly found to be the cheapest.

The multimillion-dollar deal with Coles will result in Viva Energy becoming Australia’s largest fuel retailer, totalling 710 sites across the country – with the network set to grow in the coming years.

Viva currently has a 50 per cent non-controlling interest in Liberty fuel, with rights to fully acquire the business from 2025 – further increasing the company’s footprint across regional areas.

With almost 20 years under its belt, Coles hasn’t commented on the reasoning behind its exit from the fuel business.

Some analysts have suggested it could be a move to underline its commitment to the environment. Others have suggested Coles is making an early call amid the market shift to electric cars.

It is also possible Coles stands to make more money than it has under its previous ownership, by continuing to sell its groceries and other related goods to the petrol giant.

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