ACCC Investigates Fuel Price Gouging Amid Iran War Disruptions
The Australian Competition and Consumer Commission (ACCC) has been inundated with more than 500 reports of possible petrol price-gouging since the outbreak of war in Iran, putting fuel retailers on high alert. ACCC chair Gina Cass-Gottlieb has warned that the watchdog will come down hard on any retailers found to be exploiting the crisis, as prices surged rapidly within hours of the initial US and Israeli-led strikes, defying typical market lags.
Rapid Price Increases and Consumer Concerns
Cass-Gottlieb highlighted that fuel prices experienced a "rapid change" immediately after the war began, which is unusual as prices typically lag due to existing stock in the supply chain. She emphasized the importance of retailers being accurate, open, and honest about reasons for price increases, treating customers fairly during this turbulent period. The ACCC is closely monitoring representations and conduct impacting consumers, likening the current supply disruption through the Strait of Hormuz to the economic pain felt during the Covid-19 pandemic.
Investigations into Major Fuel Suppliers
On Thursday, the ACCC announced it is investigating alleged anti-competitive behavior regarding diesel availability to independent operators in regional and rural Australia. Major suppliers named in the statement include Ampol, BP, Mobil, and Viva Energy. However, Exxon Mobil has strongly rebutted the allegations, calling the ACCC's claims "baseless" and accusing the watchdog of creating a distraction during the crisis. Exxon Mobil stated that its team has been working non-stop to support customers and has exceeded obligations to those with established supply contracts.
Government Response and Market Monitoring
The ACCC will release its latest fuel market monitoring report on Friday, covering price movements in 190 areas across rural, regional, and metropolitan Australia. In response to the crisis, Climate Change and Energy Minister Chris Bowen announced the release of an additional 519 million litres of petrol and diesel for sale, directed primarily to regional Australia. This amount equates to about four extra days of diesel supply and three days of petrol, with the Commonwealth focusing on securing fuel supply and collaborating with states to distribute it effectively.
Political Calls for Action and Future Implications
The Greens have urged Prime Minister Anthony Albanese and Treasurer Jim Chalmers to implement a 25% levy on gas exporters to capture windfall profits from soaring global prices. Greens leader Larissa Waters suggested this could raise $17 billion for the budget, citing strikes on gas fields in Qatar that are expected to push up prices worldwide. She warned that even if the war ends soon, restoring production facilities could take months to years, leading to sustained financial windfalls for Australian LNG exporters. The ACCC's investigations remain at a preliminary stage, with no final view formed on the allegations yet.
