Coles Express were consistently criticised for their high prices.
Fuel prices at Coles Express petrol prices will soon be plummeting with the company announcing a new price control deal after their persistently high prices were criticised by consumers and competition watchdogs alike.
Last week, Coles signed a deal with Viva Energy (a fuel provider) which handed over the responsibility of setting petrol prices to the supplier as a means of tackling high prices at Coles Express.
The ten-year agreement, which was announced to the Australian Security Exchange on Wednesday, comes in response to the widely criticised high fuel prices at Coles Express petrol stations which consistently sat well above the current market value.
In 2018, the Australia Competition and Consumer Commission released a report that showed that Coles Express priced their fuel around 12%-18% more than market value.
In return for handing over the responsibility, Viva will make a one-off $137 million payment to Coles for “changed commercial terms”, and will begin taking a larger cut on convenience sales (drinks, coffees etc.)
The deal will affect the 700+ Coles Express stores in Australia with motorists expecting to see prices reduce within the next 12 months.
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Written by Kate Stevens
Images: Getty
