AUSTRALIA | Following global panic, the ACCC has committed to increasing its scrutiny of the fuel market and its pricing.
The ACCC said it will urgently meet with fuel market participants to seek more detailed explanations for recent pricing conduct during the current Middle Eastern crisis, amid consumer concerns about sudden petrol and diesel price spikes and distribution issues in regional and rural Australia.
ACCC Moves to Scrutinise Fuel Price Spikes
The ACCC said it will also commence weekly market updates to provide increased transparency to consumers and enhanced scrutiny of retailers’ behaviour.
“We know the impact that higher prices are having on Australian consumers. We have been watching pricing behaviour closely since the outbreak of recent hostilities in the Middle East and will take action against any case of misleading consumers about the reason for the steep and rapid increase in prices by individual retailers or any breaches of the competition provisions,” ACCC Commissioner Anna Brakey said.
“We are closely watching market behaviour and if there is conduct that is collusive or misleading or deceptive, we will investigate it and take action where appropriate.”
Diesel Supply Concerns in Regional Australia
In addition, the ACCC is urgently exploring measures to assist with diesel distribution issues in regional and rural areas, in partnership with other relevant agencies.
“We are aware of the concerning reports about diesel availability in regional and rural Australia. We know how critical diesel supply is to primary producers, transport businesses and many others, so we are prioritising our work to assist with this,” Brakey said.
“The ACCC is able to authorise conduct, such as coordination or agreements relating to distribution, where it provides a net public benefit. We stand ready to receive an application for authorisation.”
Fuel Retailers Called to Emergency Meeting
The ACCC wrote to petrol retailers last week seeking information about recent price increases and is expecting their responses by the end of the day.
“We are now calling the industry into an emergency meeting to explain their actions during this period of volatility,” Brakey said.
“At that meeting, we will reiterate our expectations to industry and ask that they explain to the Australian community the reasons behind recent price spikes. We are also inviting representatives of motoring organisations representing the voice of consumers to be part of these discussions.”
She said that the petrol industry should be under no illusions, and that the ACCC will act decisively and to the fullest extent of the law.
The ACCC has also welcomed the government’s plans to move to increase the maximum penalties for relevant breaches of Australian Consumer Law and the Competition and Consumer Act by fuel companies from AUD 50 to AUD 100 million, and will seek the highest penalties appropriate in any cases we bring to the courts.
“We strongly recommend that, where possible, consumers use information on our website and on fuel apps to shop for the cheapest fuel, to locate retailers that are pricing moderately compared to others and reward those that offer the best deal.”
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