Service station owners have been put on notice not to take advantage of customers due to volatile fuel prices caused by conflict in the Middle East.
Treasurer Jim Chalmers has written to the Australian Competition and Consumer Commission calling for the watchdog to monitor for potential price gouging at the bowser by operators.
Petrol prices have been fluctuating following uncertainty in the Middle East with Iran and Israel trading air strikes and the US bombing Iranian nuclear facilities.
Fears of an escalation in the conflict had prompted concern of fuel facilities being impacted which would see oil prices rise further.
Dr Chalmers said drivers needed to be treated fairly at the fuel pump.
“We don’t want to see service stations do the wrong thing by Australian motorists,” he told reporters in Brisbane on Tuesday.
“We don’t want to see this volatility in global oil prices lead to more than justifiable changes in the price that Australian motorists pay at the bowser.”
Oil prices had been sitting about $62 per barrel at the start of June, before rising to $79 following US strikes on Iran.
While the price has moderated since a ceasefire agreement was reached, economists had warned the cost could rise to above $100 a barrel if fuel supplies were impacted by further strikes.
Consumer watchdog chair Gina Cass-Gottlieb has been asked to report back to the treasurer on price-gouging issues.
“I would expect the ACCC … to investigate any concerns arising about misrepresentations regarding petrol prices, false and misleading conduct or anti-competitive conduct in petrol markets, and to take appropriate action,” Dr Chalmers said in a letter to the commission.
AMP chief economist Shane Oliver said should the price of oil reach above $100 a barrel, it would add 25 cents per litre to retail petrol costs.
He said an increase in petrol costs could push up inflation, which would flow on to other parts of the economy.
“If the oil price went to $100 to $150 a barrel and it’s a much bigger boost to inflation, the Reserve Bank of Australia would be inclined to wait before cutting interest rates again,” he told AAP.
“The price of airfares could go up, as well as plastic prices, which affects a lot of household goods.”
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