Fuel companies warned to give Aussies fair go at bowser
Fuel companies will be allowed to coordinate on supplies but have been warned not to cooperate on prices that would disadvantage Australians.
After Iran effectively closed the Strait of Hormuz in retaliation for US-Israeli attacks, oil prices rose and global supply was cut off.
Increasing demand has also put increasing pressure on fuel supply chains.
Australia’s consumer watchdog has granted emergency interim powers to members of the Australian Petroleum Institute to allow companies to discuss, exchange information and coordinate fuel supplies without risking breaching competition laws.
However, fuel suppliers are not allowed to share information about prices or agree on prices.
Gina Cass-Gottlieb, chair of the Australian Competition and Consumer Commission, said allowing large companies to coordinate increased the risk of harming competition, so authorization had strict conditions.
“We recognize how critical it is for the industry to be able to quickly and efficiently coordinate and respond to the supply chain disruptions we are experiencing,” he said.
Finance Minister Jim Chalmers warned on Saturday that any company that broke the rules would be punished.
“It’s really important that the big players in the fuel market don’t see this as a chance to disadvantage the independents who play a vital role, including in the Australian region,” he said.
“The government is working with industry and regulators to ensure Australians have a fair footing at the pump and across the supply chain, and anyone who breaks the rules needs to be dealt with.”
The watchdog also imposed conditions on the authorization aimed at maintaining independent fuel distribution.
“We point out that independent suppliers are part of local, regional communities and have built relationships in their areas,” Ms Cass-Gottlieb said.
“They are a very important part of the supply chains in this market and need to be part of the solution to fuel supply issues, including obtaining adequate allocations from major suppliers.”
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