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According to ACCC, supermarket-based petrol station chain lose market share while retail wholesaler and independent petrol station earn market share.
According to the Australian Competition and Consumer Commission (ACCC), supermarket-based petrol station chain, such as Woolworths petrol and Coles express lose market share while retail wholesaler (e.g. BP, Caltex, Mobil, Shell) and independent petrol station chain (e.g. Seven-eleven, United, Puma energy) earn market share
- Supermarket based: 12’/13’: 51% -> 16’/17’: 37%,
- Wholesaler: 12’/13’: 30% -> 16’/17’: 38%
- Independent: 12’/13’: 19% -> 16’/17’: 25%
There are two reasons, why this cross happened.
Firstly, supermarket-based petrol retailers have some business problem. In case of Woolworths petrol, 131 petrol stations moved to Caltex brand station. Coles express has a problem in supplier. Viva energy/Shall had increased petrol price from 2017, so they must sell expensive petrol compare with others.
Secondly, retail wholesaler and independent petrol station promote their product to increase market share. BP joined Velocity frequent flyer program, a membership of Virgin Australia, so customers can earn and use Velocity points in the station. Caltex joined with Uber and give more discount to Uber drivers. Also, Seven-eleven launched a mobile application, which can purchase petrol up to 7 days earlier to avoid petrol price circulations.
In this situation, Woolworths tried to sell Woolworths petrol to other company. In end of 2016, Woolworths decided with BP to sell the petrol division, but ACCC reject the contraction because of oligopoly. So, they contact with another company, British company EG group, and sell Woolworths petrol in 1.7 billon dollars with some conditions like maintain 4c discount with Woolworths and sell supermarket inside the petrol station together.