Victoria to Cap Fuel Price Hikes in Cost-of-Living Overhaul

Premier of Victoria Jacinta Allan speaks during a Cricket Australia Media Opportunity at Melbourne Cricket Ground in Melbourne, Australia, on Aug. 18, 2024. Asanka Ratnayake/Getty Images for Cricket Australia

The Allan Labor government has announced new fuel pricing regulations to help Victorian families manage cost-of-living pressures and create a fairer market.

Under the plan, more than 1,500 fuel retailers across the state will be required to provide real-time pricing data, which will be available through a new fuel finder feature on the Service Victoria app.

Currently, fuel price reporting in Victoria is voluntary and inconsistent. Unlike existing commercial price reporting websites, the government’s fuel finder will provide comprehensive data without advertisements or promotions for specific outlets.

“To help you save money at the servo, we will require fuel companies to publicly report their price changes the day before—and lock them into that price for 24 hours,” Premier Jacinta Allan said.

Fuel Prices to Be Locked in for 24 Hours

A key aspect of the Fair Fuel Plan is the introduction of daily fuel price caps, ensuring prices are set the day before and frozen for 24 hours.

This initiative will allow motorists to plan fuel purchases with confidence, knowing that prices cannot increase throughout the day.

However, retailers will still have the flexibility to lower prices at any time.

Victorian motorists will be able to check fuel prices in advance and avoid unexpected hikes when they arrive at the pump.

“The fuel finder feature on the Service Victoria app will give you access to real-time fuel prices from service stations across the state – so you can shop around for the cheapest deal,” Minister for Government Services Natalie Hutchins said.

The Fair Fuel Plan is set to roll out in phases over 2025, with the fuel finder app launching later this year.

Government estimates suggest the plan could help motorists save hundreds of dollars annually.

Australian Competition and Consumer Commission (ACCC) data from 2023 indicates that Melbourne drivers could have saved up to $333 (US$207) a year by purchasing fuel at the lowest points of price cycles.

Consultation and Enforcement Measures Underway

To implement the new regulations, the government will introduce legislation and consult with industry stakeholders to develop a fair and practical enforcement framework.

Work is underway to determine penalties for non-compliance and ensure smaller retailers can adapt to the new requirements.

The premier and Minister for Consumer Affairs Nick Staikos met with tradies and apprentices at Victoria University Werribee campus to announce the initiative.

Allan acknowledged that while the plan may not solve all financial challenges for families, it could provide meaningful savings over time.

“We know this won’t change everything for families who are doing it tough, but these savings can add up to hundreds of dollars a year,” she said.