Australia’s fuel retail market is facing increased regulatory attention after the Australian Competition and Consumer Commission (ACCC) referred Ampol Limited’s proposed acquisition of EG Australia to a Phase 2 merger review.
The decision reflects preliminary concerns that the transaction could weaken competition in the retail supply of petrol and diesel across several metropolitan and regional areas.
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The Phase 2 review places the proposed deal under more detailed examination as part of Australia’s newly implemented mandatory merger control framework. Under this system, transactions that may raise competition risks must receive regulatory clearance before completion.
ACCC raises concerns over local fuel competition
Ampol is one of Australia’s largest fuel retailers, operating a nationwide network of service stations, while EG Australia runs hundreds of fuel and convenience sites following its acquisition of Woolworths’ petrol business in 2019.
The ACCC has identified significant overlap between the two businesses in multiple local markets.
In its initial assessment, the regulator flagged more than 100 locations where the merger could reduce competitive pressure, particularly in major urban centres such as Sydney, Melbourne, Brisbane and Canberra.
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By GlobalDataThe ACCC indicated that reduced competition in these areas could affect fuel prices and consumer choice.
Ampol proposed divesting a limited number of retail fuel sites as a remedy. The ACCC determined that the proposed divestments did not adequately address the competition concerns identified at either the local or broader metropolitan level, prompting the escalation to Phase 2.
Phase 2 review under new merger control rules
The referral is one of the first major tests of Australia’s updated merger review regime, which came into effect in early 2026. The new rules introduce a formal two-stage process, with Phase 1 designed for quicker assessments and Phase 2 reserved for transactions that raise more complex competition issues.
A Phase 2 review allows the ACCC to seek additional information from the merging parties, competitors, suppliers and other market participants. The process involves a more detailed analysis of market structure, pricing behaviour and barriers to entry, and can extend for several months.
Under the current timetable, stakeholders have been invited to provide submissions as the ACCC continues its investigation into the potential impact of the Ampol and EG Australia combination.
Implications for the fuel retail sector
The outcome of the ACCC review could have wider implications for consolidation in the Australian fuel retail market, which has seen increasing concentration over the past decade.
Industry participants are closely monitoring the case, as it may signal a more interventionist approach by the regulator in sectors where local market concentration is high.
The ACCC may ultimately approve the acquisition, approve it subject to further conditions such as additional divestments, or block the transaction if competition concerns cannot be resolved.
The decision is expected to provide important guidance on how Australia’s competition regulator will apply its strengthened merger powers in practice.
For international observers, the case highlights Australia’s evolving stance on merger control and the growing regulatory focus on retail fuel markets with significant consumer exposure.
