Australia’s fuel retail sector is under sharper regulatory scrutiny, with the competition watchdog stepping in to closely examine a proposed deal between two of the country’s largest fuel networks. The move signals a growing focus on how consolidation could affect fuel prices, choice, and competition at the local service station level.
The Australian Competition and Consumer Commission has escalated its review of Ampol’s plan to acquire EG Australia into a more detailed assessment phase. This decision reflects concerns that combining two major fuel networks could reduce competition in many suburbs and regional towns across the country.
Why the regulator is paying attention
Ampol operates one of the largest networks of branded service stations in Australia, while EG Australia controls hundreds of fuel and convenience sites following its takeover of Woolworths’ fuel business several years ago. The regulator has identified a large number of locations where both brands already operate close to one another.
Early analysis suggests that in more than 100 areas, particularly across Sydney, Melbourne, Brisbane and Canberra, the merger could leave motorists with fewer choices at the bowser. Less competition at a local level can often lead to higher prices and reduced pressure on service standards.
Ampol has proposed selling a small number of sites to address these concerns, however the regulator has indicated that this approach may not be enough to maintain healthy competition in affected areas.
What a Phase 2 review means
Under Australia’s updated merger rules, deals that raise more complex competition questions are escalated to a deeper investigation stage. This allows the regulator to gather input from a wide range of industry participants, including independent service station operators, fuel suppliers, wholesalers and other stakeholders.
During this phase, the ACCC examines local market conditions, pricing behaviour, supply access and how easy it is for new competitors to enter the market. The process can take several months and often leads to one of three outcomes, approval, approval with strict conditions, or a decision to block the transaction entirely.
Why independent service stations should take note
For independent operators, this review is an important reminder that local competition matters. Regulators are increasingly focused on what happens suburb by suburb, not just at a national brand level. Independent service stations play a critical role in keeping fuel markets competitive, especially in regional and outer metro areas.
The outcome of this case may also influence how future fuel network acquisitions are assessed. If stricter conditions are imposed, or the deal is blocked, it could slow further consolidation and help preserve competitive pressure that benefits independents and customers alike.
What happens next
The regulator is continuing to consult with industry participants as part of its investigation. A final decision will set an important precedent for how fuel retail mergers are treated under the new rules.
For ServoPro members, this is a clear sign that independent sites remain a vital part of Australia’s fuel landscape, and that regulators are increasingly aware of the value competition brings at the local level.
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