Petrol prices remain firmly in the ACCC’s sights amid supply concerns sparked by the war in Iran.
Australian Consumer and Competition Commission (ACCC) Commissioner Anna Brakey points out that global prices remain beyond the control of domestic retailers.
“While international costs are largely outside the control of local petrol retailers, we remind retailers that making false or misleading statements to consumers about the reasons of price increases would be in breach of Australian consumer law,” she says.
“The ACCC will not hesitate to take action if representations and market behaviour by a petrol company contravene competition and consumer laws.”
She says they have already reached out to major fuel companies about their “expectations” about domestic fuel prices.
“At this time, as at any time, we encourage motorists to use fuel price apps and websites to shop around to find the lowest prices.”
She says US intervention in Venezuela in January had a minimal impact on global crude oil prices but over the last week, prices increased sharply due to the Iran war.
(Iran has closed the Strait of Hormuz to all but Chinese shipping which will affect global oil supplies and prices as shipping companies avoid the region; click here to read more about the strait.)
The ACCC noted that diesel prices had increased in all capital cities in the December 2025 quarter compared to the previous three months with a “significant” increase recorded over the last week.
RACQ ON PETROL PRICES
Queensland motoring body RACQ says it referred major fuel retailers to the ACCC for pumping up prices less than three days after war erupted in Iran.
RACQ’s Principal Economic and Affordability Specialist, Dr Ian Jeffreys says the price jumps appear to be unjustified.
“There is no good reason for fuel companies to be increasing their prices just days after conflict broke out in the region,” Dr Jeffreys says.
“Yes, we’ve seen an increase in the global oil price but that usually takes around two weeks to flow through to bowsers here in Australia, not two days.
“While we’ve seen a steady uptick in wholesale prices over the past week, we’re yet to see any significant additional spike because of the conflict,” he says.
Dr Jeffreys says SE Qld fuel stations were already charging above the average wholesale price before war broke out.
“When Russia invaded Ukraine, we didn’t see this kind of behaviour; the price cycle continued as normal and price rises were absorbed into the cycle,” he says.
“If anything, prices in SEQ should be falling right now and increases in wholesale price should be absorbed into the discounting phase, meaning our next cheap phase wouldn’t be as cheap.”
In February, the Federal Court ordered Mobil Oil Australia to pay $16 million in penalties for making illegal statements about fuel sold at nine petrol stations in north and central Queensland.
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