Ampol aims to grow its retail footprint with the acquisition of UK fuel retailer EG's Australian assets, indicating confidence in Australia's liquid fuel market and potentially safeguarding the 109,000 b/d Lytton refinery beyond 2027.
The acquisition comes despite official forecasts of slumping demand for diesel and gasoline, a federal government intent on boosting the numbers of electric vehicles (EVs) on the road, and concerns about the profitability of convenience retail.
Ampol owns 690 company-operated sites in Australia and the acquisition would significantly increase its retail assets. EG's fleet of retail sites would provide some additional sites for Ampol's refined products, although many already stock Ampol fuels. The acquisition indicates Ampol's bearish outlook on EV uptake, especially as Australia has electrified more slowly than previously expected.
The announcement came just days before the release of Ampol's half-year results to 30 June, in which it criticised the Fuel Security Services Payment (FSSP) programme.
Full story Australia’s Ampol expands fuel retail footprint | Latest Market News
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