Fuel suppliers hauled in for explanation over prices
Australia’s consumer watchdog will call major fuel suppliers for an explanation of skyrocketing prices.
A number of retailers, including Ampol, BP, Chevron, Exxon Mobil and 7-Eleven, will be among the companies called for an emergency meeting by the Australian Competition and Consumer Commission.
Iran closed the Strait of Hormuz, one of the world’s most important oil corridors, in response to the US-Israeli war against the country.
This led to an increase in oil prices, with unleaded petrol rising above $2.20 a liter and diesel rising above $2.60 a liter in Australia’s major cities.
Finance Minister Jim Chalmers said the sharp rise in oil prices following the outbreak of war in the Middle East had raised serious concerns at the ACCC.
“The ACCC is calling on oil suppliers and retailers for an explanation,” he said.
“I made it very clear that we expect the ACCC to throw the book at them if they find evidence of abuse.”
Labor had previously asked the consumer watchdog to monitor prices after the war broke out to ensure drivers were not mistaken for “trophy”.
Fuel standards will be relaxed for two months to ensure greater supply to combat shortages in the bowser, Energy Minister Chris Bowen said.
This would bring in an extra 100 million liters a month, the equivalent of about two days’ supply.
Motoring groups and the federal government have urged Australians to stop panic-buying and stockpiling fuel, reassuring the community that fuel is still coming into the country.
One Nation MP Barnaby Joyce has proposed rationing cities and reserving fuel for farmers and regional areas as the war drags on.
Fuel transportation companies supported the proposal.
But the NRMA opposed the idea, saying rations would lead to unnecessary economic and social impacts.
Opposition Leader Angus Taylor said the government needed to accept there was a problem with fuel supplies.
“What we need is to move fuel as quickly as possible through the supply chain,” he told Nine’s Today on Tuesday.
“We have a refinery that exports its fuel… that fuel needs to go to Australians.”
Finance Minister Katy Gallagher said it was the government’s responsibility to consider contingencies and be prepared to respond to problems that arise as a result of war.
“Every tool we have is being used and we will continue to do so as the conflict continues,” he told ABC News Breakfast.
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