Government Announces Crackdown on Gouging Amid Record Fuel Prices

Federal Government to Crack Down on Fuel Price Gouging

In response to the recent surge in petrol and diesel prices following escalating tensions in the Middle East, Federal Treasurer Jim Chalmers has announced that the Australian Government will take action against fuel suppliers accused of price gouging. Chalmers has vowed to pursue businesses that are unfairly inflating prices and “ripping off” motorists.

The Australian Competition and Consumer Commission (ACCC) has noted that while international oil prices have increased, Australian refined international petrol and diesel benchmark prices have risen even more during the conflict.

As petrol prices continue to soar not only in Australia but also in other countries like the UK and US, where they have reached around $US4 per gallon (A$5.83 per gallon, or A$1.54 per litre), concerns about the impact on motorists and the transport industry are mounting.

National average petrol prices for the week ending March 29, 2026, have hit $2.53 per litre, up from $2.38 the previous week and $2.27 one month ago. Similarly, diesel prices have surged to $3.10 per litre, up from $2.82 the previous week and $2.58 over the past month.

In response to the rapid price increases, the ACCC has reached out to major petrol retailers, including 7-Eleven, Mobil, BP, Chevron, United Petroleum, Viva Energy, and EG Australia, seeking transparency on the factors influencing the price hikes.

ACCC Commissioner Anna Brakey emphasized the importance of petrol retailers being open and honest about their pricing strategies to ensure they are treating customers fairly. She urged petrol retailers to provide clear explanations for the significant and sudden price fluctuations.

Following the announcement of measures to address rising fuel costs and prevent supply shortages, Chalmers reiterated the government’s zero-tolerance policy towards price gouging. The government has increased penalties and empowered the ACCC to issue on-the-spot fines to deter unfair pricing practices.

Effective April 1, 2026, the federal government will halve the fuel excise on petrol for three months, reducing the current excise of 52.6 cents per litre to 26.3 cents per litre. This move aims to alleviate the financial burden on motorists, with the cost of filling a 55-litre tank in a Toyota RAV4 expected to decrease by approximately $14.47.

Furthermore, the road user charge for vehicles over 4.5 tonnes Gross Vehicle Mass (GVM) will also be halved for the same three-month period to ease transport costs and mitigate cost-of-living pressures across the economy.

To ensure that fuel retailers pass on these savings to consumers, Chalmers highlighted the strengthened powers of the ACCC, enabling them to take swift action against any unfair practices in the industry.

Amid the ongoing fuel crisis, Minister for Climate Change and Energy, Chris Bowen, reassured the public that Australia currently has around 39 days’ worth of petrol and 30 days of diesel in reserve, with fuel imports arriving at record levels. However, these reserves fall short of the International Energy Agency’s requirement for member countries to maintain at least 90 days of net fuel imports.

As Australia navigates through the fuel crisis, the government remains committed to addressing the challenges posed by rising fuel prices and ensuring transparency and fairness in the fuel industry.