Coles and Woolworths are reallocating the $500 million they spent on fuel discounts last year, offering higher rebates on groceries after fuel discounts of more than four cents per litre were banned last year.
The new grocery discounts will enable shoppers to recoup as much as 20 per cent of their shopping, reports The Australian Financial Review.
According to analysts, the rebates are the equivalent of petrol discounts worth 20 cents and 40 cents per litre. Analysts also estimated the duo’s spending on fuel discounts was as high as $509 million last year.
The move comes less than a month after the chains agreed to limit discounts to four cents a litre.
Coles and Woolworths also agreed to stop funding the discounts through their supermarket divisions, with any future discounting to be covered by their fuel retailing business.
Woolworths is offering discounts to Everyday Rewards cardholders and Coles is making offers to FlyBuys cardholders.