The group has warned that to allow the sale could have  “disastrous effects”.

The ACCC’s draft competition policy says that current restrictions on convenience stores “can prevent small business from competing with large retailers like Woolworths and Coles”.

The Australian Drug Foundation’s Geoff Munro said making alcohol available in a service station would increase pressures to consume it, especially on young people.

“If we licence petrol stations we’re licensing premises where young people go without adults,” he said.

“We believe convenience stores are more lax in terms of checking ID,” he said. “Research shows it’s easier for young people to purchase from general stores.”

But Australian Association of Convenience Stores executive director Jeff Rogut supported the recommendations.

“There is no reason stores can’t adhere to existing laws. Just like the sale of cigarettes, with the right training and enforcement we could do it responsibly,” he said.

“We want to give customers the choice to grab beer and wine on the way home while filling up, not selling alcohol 24 hours a day,” he said.