Market regulation

The Australian Competition & Consumer Commission (ACCC) has delivered a sobering report on the country’s supermarket sector, revealing that giants Coles and Woolworths, which together command nearly 67% of national supermarket grocery sales, have little incentive to aggressively cut prices. Instead, both chains have been steadily increasing their earnings margins over recent years—with a more pronounced rise at Woolworths. Despite concerns over potential price gouging during the pandemic, the ACCC stopped short of declaring the market a duopoly, instead noting that the sector is distinctly oligopolistic with very few major competitors.

The Fair Fuel Plan introduced by the Victorian government aims to combat rising fuel prices and alleviate cost-of-living pressures on residents. Central to this initiative is a daily petrol price freeze and the development of a tracking app to empower consumers with price transparency. While the plan has generated support and optimism among motorists seeking relief, concerns about its impact on market dynamics and competition have also emerged. This blog post explores the features of the Fair Fuel Plan, industry reactions, and public opinions, highlighting both the potential benefits and risks associated with the government’s approach to managing fuel prices.