Independent petrol retailers give motorists choice and can lead to lower petrol prices

Petrol prices are generally cheaper in cities that have more small-to-medium-sized independent petrol retailers competing with larger chains, the ACCC's latest petrol industry report has found.

The report looks at the market composition of Australia's evolving petroleum industry. It found that among Australia's capital cities, average retail prices for regular unleaded petrol were highest in Brisbane and Canberra from July 2022 to June 2024, where there are fewer independent petrol retailers in operation.

In contrast, average retail petrol prices were generally lower in cities that had more smaller independent petrol retailers.

"More competition leads to better outcomes for consumers including lower prices," ACCC Commissioner Anna Brakey said.

"Our report found that consumers can often find more competitive petrol prices in cities where there are a greater number of smaller independent petrol retailers."

"We encourage consumers to shop around and take advantage of near real-time petrol price apps and websites to find lower prices in their local area," Ms Brakey said.

The market share of smaller independent retailers is growing

Smaller independent petrol retailers accounted for around 26 per cent of national retail petrol sales in 2023-24, increasing from 18 per cent in 2017-18.

'Smaller independents' represent a group of brands including Speedway, Metro Petroleum, Freedom Fuels, Budget, Vibe, Pearl Energy and others. In 2023-24, this collective group was made up of at least 30 different retail brands operating across Australia.

In 2023-24, the larger retail brands accounted for around 74 per cent of national retail petrol sales. This included Ampol, bp, Chevron/Caltex, United Petroleum, 7-Eleven, EG Group, Coles/Reddy Express and On The Run.

Some capital cities have more competing brands than others. Based on petrol sales in 2023-24, the ACCC estimates that as a group, smaller independents had the strongest presence in Sydney, Melbourne and Adelaide, and a smaller presence in Brisbane and Canberra

Estimated market shares of retail petrol sales for each capital city in 2023-24

Four major companies refine, import and wholesale petrol in Australia

Ampol, bp, ExxonMobil and Viva Energy supply (either through domestic refining or imports) and wholesale the majority of petrol around Australia. In 2023-24, these companies reported supplying in aggregate around 88 per cent of petrol, and accounted for around 85 per cent of total wholesale petrol sales in Australia.

Australia's domestic refining capacity has reduced significantly over a long period. Currently, Ampol and Viva Energy operate the two remaining refineries in Australia.

"The industry has experienced some major changes over the last eight years. We have seen the decommissioning of significant refining infrastructure, a range of acquisitions, the renaming and rebranding of major companies, and changes to goods and services offered to consumers at retail fuel sites."

"Despite local refinery closures, the composition of major suppliers in the supply sector has remained relatively steady," Ms Brakey said.

National market shares of petrol volumes in the supply, wholesale and retail sectors in 2023-24 in percentage terms

Note to editors

This report shows aggregate market shares based on total volumes across all grades of petrol. This includes: regular unleaded petrol 91, premium unleaded petrol 95 and 98, and E10 (regular unleaded petrol blended with up to 10% ethanol).

The majority of registered vehicles in Australia are petrol-powered (around two-thirds), with most other registered vehicles powered by diesel.

Background

On 14 December 2022, the Treasurer issued a Direction to the ACCC to continue to monitor the prices, costs and profits relating to the supply of petroleum products in the petroleum industry in Australia and produce a report every quarter for a further three years.

In addition to quarterly petrol monitoring reports, the ACCC also prepares petrol industry reports on particular aspects of consumer interest in the fuel market in relation to prices, costs and profits.

As part of its monitoring activities, the ACCC currently collects volume and other data from the following companies: Ampol, bp, ExxonMobil, Viva Energy, Chevron, United Petroleum, 7-Eleven and EG Group, as well as data for the Coles Express/Reddy Express and On The Run retail networks (provided by Viva Energy).