The retail petroleum sector is a major contributor to the Australian economy providing approximately 37,000 jobs, with a turnover of $28.8 billion in 2006-07 (2006-07 prices) – Source: IBISWorld 2007.
Investment is spread across a wide range of ownership structures that include retail sites owned, operated or franchised by the four refiner/marketers operating in Australia: BP, Caltex, ExxonMobil and Shell; independent chains (such as 7-Eleven, Gull, Matilda, United and Liberty); sites owned and operated by individuals or co operatives; and sites owned or operated by supermarkets in alliances with refiner/marketers (Woolworths and Coles Myer).
Australia’s retail petroleum industry is constantly evolving, with petroleum retailers confronting major challenges associated with low fuel margins, fluctuating prices, changing business structures and increased competition.
Over the past several years, the petroleum retail industry in Australia has undergone significant structural change with a major expansion in the market share of supermarkets following expansion of Woolworths’ retailing activities and the entry of Coles Myer.
In addition to their dominance in the refining sector, the major oil companies have a strong market position in the wholesale segment, although there are independent wholesalers, such as United Petroleum and Gull, and smaller rural distributors in most states.
Although the service stations sector is comprised of a large number of operators, around 75 per cent are owned by, or directly affiliated with, the four major petroleum refining and marketing companies (this includes service stations operated by the major oil companies, franchisees, supermarkets or independent operators with major oil company branding agreements). Their share of retail fuel sales is believed to amount to approximately 90 per cent of the total.
Most metropolitan sites are operated by franchisees (single and multi-site) or independents (major-branded, own brand and chain). The majority of service stations in rural areas are independents supplied through distributors (less than half of which are partly owned by the oil majors).
2007 ACCC report into Petrol Prices and Australian Consumers
On 18 December 2007, the Australian Competition and Consumer Commission (ACCC) released its report into the price of Australian unleaded petrol. To view the report, please use the following link: Petrol Prices and Australian Consumers
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Following the report’s release, the Assistant Treasurer, the Hon Chris Bowen MP, issued a press release outlining the Australian Government’s response to the inquiry, as well as outlining the National FuelWatch Scheme which will commence on 15 December 2008. To view the Australian Government’s response, please use the following link: Government Response to the Australian Competition and Consumer Commission (ACCC) Petrol Price Inquiry.