Australian grocer Coles Myer today started offering discounted fuel to customers in New South Wales, Tasmania and the ACT.

As part of its alliance with Shell, Coles has already successfully trialed 159 stores in Victoria. The company expects to operate in excess of 580 service stations across the country by the middle of next year. It expects to generate some A$3.5bn (US$2.5bn) in annual turnover from fuel.

Coles Myer chief executive John Fletcher said 164 stations across NSW, 17 in the ACT and 15 in Tasmania would be converted to carry both Coles Express and Shell branding, reported the Geelong Advertiser.