Prime Minister Puts Fuel Retailers on Notice

Australian Prime Minister Anthony Albanese speaks during a joint press conference with NZ Prime Minister Jacinda Ardern in Sydney, Australia on July 8, 2022. (Lisa Maree Williams/Getty Images)

Prime Minister Anthony Albanese has put fuel retailers on notice after data suggested that fuel prices were raised prior to the end of the fuel excise cut that was introduced early in the year by the former Coalition government.

Speaking to FiveAA Radio on Sept. 29, the prime minister said he was very concerned about Australians getting ripped off by fuel retailers who were taking advantage of the end of the excise cut.

He said the federal government had told the Australian Competition and Consumer Commission (ACCC) to monitor the situation closely.

“That’s why we’re getting the ACCC to really monitor all of the costs of fuel, to make sure that there isn’t a ripping off of consumers,” Albanese said. “And we’ve really ramped that up.”

The prime minister also warned fuel retailers who were thinking of rising prices as a way of getting a quick financial windfall to consider their actions.

“I'd say to any operators out there who are thinking of taking a windfall game that the ACCC will clamp down on you,” he said.

A fuel bowser is seen with different petrol types on Feb. 29, 2012 in Sydney, Australia. (Cameron Spencer/Getty Images)

The warning from the prime minster comes as the ACCC declared in a post on its website that it did not expect to see a rapid fluctuation in prices after the re-introduction of the fuel excise, but warned they would be watching the sector closely.

“We expect that there will be no uncharacteristic or abnormal retail price increases in the days leading up to, on the day of, or after the reintroduction of the full rate of fuel excise,” the ACCC said.

“Following the excise reintroduction, the ACCC will be monitoring wholesale and retail prices closely and will not hesitate to take action where there is evidence of misleading or deceptive conduct, misrepresentation about the excise increase and retail prices, and anti-competitive behaviour (such as price collusion).”

In Australia the government places a nominal level of excise and excise-equivalent customs duty on all fuels except aviation fuel.

According to the ACCC, this excise is increased twice a year based on movements in the Consumer Price Index (CPI). This typically transpires on Feb. 1 and Aug. 1 each year.

The ACCC estimated that on Aug. 1 the rate of excise for petrol and diesel increased by 0.9 cents per litre (cpl), thus when the scheduled temporary excise cut ended on Sept. 29, the excise increased to 46 cpl.