ACCC to keep closer eye on petrol stations as fuel prices break records

The Federal Government has asked the country’s top consumer watchdog to increase its monitoring of fuel prices, just days after the authority published its latest quarterly report on the Australian petroleum market.

On Friday, the Australian Competition and Consumer Commission (ACCC) released its June quarter report, which found the annual average price of petrol was the highest since 2008 in nominal terms – though only the highest in eight years once inflation is considered.

Petrol prices hit this high despite efforts to make it more affordable after the former Federal Government temporarily halved fuel excise tax.

The radical cost-cutting measure was introduced after fuel prices skyrocketed amid "increased demand, production cuts by Russia and the OPEC cartel, and war in Ukraine," the ACCC reported.

In a matter of weeks, the cost of fuel will rise by 22.1 cents per litre – or 24.3 cents per litre with GST – once the Federal Government’s discounted fuel excise tax ends, reverting to the full 44.2 cents per litre.

According to ABC News, the Federal Treasurer wrote to the ACCC to ask the independent body to increase its surveillance of petrol stations ahead of the price hike, with fears some could use the situation as an opportunity to profiteer by increasing prices early or by more than the set amount.

“We will shortly be engaging with fuel wholesalers and retailers to say that we do not expect to see uncharacteristic or abnormal wholesale and retail price increases in the days leading up to, and on the day of, or after, the reintroduction of the full rate of fuel excise,” ACCC Chair Gina Cass-Gottlieb said in a media statement issued late last week.

The newly elected Federal Government has confirmed the six-month discount – implemented by the previous government to help ease cost-of-living pressures – won’t be extended after its expiry on 29 September 2022.

In the ACCC report, the consumer watchdog confirmed benchmark international wholesale petrol prices were the highest on record in both nominal and real terms, peaking in June 2022, but have since eased thanks to cheaper crude oil market.

“Motorists are reminded that prices will continue to fluctuate with changes in international prices and the exchange rate, as well as petrol price cycles in the five major capital cities. Our monitoring and analysis will assess and report on all factors influencing retail prices. The ACCC will continue its weekly reporting to consumers about what is happening to fuel prices and when to find the cheapest fuel,” Ms Cass-Gottlieb said in a media statement.

“Shopping around and using fuel price apps can help consumers find the cheapest petrol in their area. Our previous research has shown that buying at independent retailers and avoiding the top of the petrol price cycle in the five largest capital cities can save motorists a lot of money.”