Hello FuelWatchers,

On the 21 August 2003 Woolworths Limited and Caltex Australia Limited announced plans for a 50/50 joint discount fuel venture. This followed the announcement of the commercial alliance between Coles Myer Ltd (CML) and Shell on 17 May 2003.

In an effort to understand how this additional proposed joint venture could affect fuel prices and FuelWatchers, we have summarised some of the central points from the Woolworths / Caltex proposal and press release. To read the compete news release, please click here.

The Woolworths / Caltex Proposal:
- Co-branded sites to be owned 50/50 by Woolworths & Caltex
- Woolworths/Safeway/Big W shoppers to get Caltex fuel at discounted prices (4 cents per litre off)
- Around 120 new sites will be initially added to the current 290 Woolworths sites
- There will ultimately be approximately 450 sites for Woolworths/Safeway/Big W shoppers across Australia
- All of the co-branded sites will be adjacent to Woolworths stores
- Continued quality fuel will be supplied to the 450 joint venture sites as Australian fuel quality specifications tighten from January 2004
- Caltex will manage the joint venture sites
- Woolworths will supply and determine the convenience store retail pricing in accordance with Woolworths pricing policy
- The joint venture sites will be independent of the Caltex network and will compete vigorously in the petrol market

Mr Dick Warburton, the Caltex Chairman said the joint venture would expand Caltex branding and deliver its quality fuels to approximately 300 more outlets while also gaining the benefits of Woolworths' buying for its convenience stores. "Furthermore, Caltex StarCard customers will be able to use their cards at approximately 300 additional sites", he said.

The proposed Woolworths & Caltex joint venture has yet to be approved by the Australian Competition and Consumer Commission (ACCC). The new Chairperson of the ACCC, Graeme Samuel, has voiced some concerns regarding the Woolworths / Caltex proposal and "the whole dynamic of the petrol retail market in Australia at the moment”. Mr Samuel also commented that "the independents have, according to our past examinations, traditionally been a very important part of the competitive process... If these sorts of tie-ups and other movements in the marketplace were to result in a significant lessening of the presence of independents, that has the potential to reduce competition in the market and as a result cause potential for higher prices for consumers." We will keep you up to date on developments as they come to hand.

In other fuel news, on Monday 29 September, the IGA supermarket chain announced a deal in reply to the discount schemes proposed by Coles Limited and Woolworths Limited. The discount offer will begin in Queensland, before being rolled out across the nation. The IGA discount offer varies from those proposed by Coles/ Shell and Woolworths/Caltex. The IGA offer allows customers to be reimbursed 4 cents per litre for up to 80 litres of fuel purchased at any service station when they are in possession of the receipt and spend more than $30 at an IGA store on a Friday.

It has been another busy month for FuelWatch. Until next month, continue to enjoy the savings!

Kind Regards,

Bernadette Murray
Marketing Manager
bmurray@fuelwatch.com.au

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The average, lowest and the highest prices for last month in each city were:

The price leading service stations for each city last month were:

Brisbane	Service Station Caltex Address MtGravatt-Capalaba Road Suburb Rochedale Average Price for month 76.5
Sydney	Service Station Caltex Address corner Hume Highway & Orchard Road Suburb Bass Hill Average Price for month 84.5
Melbourne	Service Station Liberty Address corner Sunshine Avenue & Malcolme Court Suburb St Albans Average Price for month 86.3
Adelaide	Service Station United Address corner Prospect Road & Audrey Avenue Suburb Blair Athol Average Price for month 88.4
Perth	Service Station Ampol Address corner Guildford Road & Third Avenue East Suburb Maylands Average Price for month 88.8

FuelWatch is committed to helping Australian motorists get a better deal on fuel by providing them with free and easily accessible information on fuel prices.

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