Treasurer Jim Chalmers puts petrol stations on notice over fuel price spikes

Treasurer Jim Chalmers has put petrol stations on notice, calling on them not to dud motorists with unjustifiably high prices amid the Israel-Iran conflict.

Servos have been put on notice to not take advantage of Australian drivers after the Iran-Israel conflict caused global oil prices to soar by more than 25 per cent.

Jim Chalmers wrote to the Australian Competition and Consumer Commission (ACCC) chief Gina Cass-Gottlieb on Tuesday requesting the watchdog be on the lookout for petrol stations attempting to “do the wrong thing by Australian motorists,” and implement non-justifiable changes on motorists.

The treasurer’s warning comes as fuel prices are feared to spike due to the conflict in the Middle East. Picture: NewsWire/ Dan Peled

The Treasurer noted global oil prices had increased by more than 25 per cent since June from about $62 a barrel to about $79 at the start of this week, however they had moderated following a potential ceasefire.

“Recent spikes in the barrel price on international markets and volatility associated with unfolding events should not be used as an excuse for retailers to gouge customers or to increase prices opportunistically above and beyond the impact of events in the Middle East,” Mr Chalmers wrote.

“I would expect the ACCC as the independent regulator enforcing Australia’s competition and consumer laws 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.”

Jim Chalmers called on the ACCC to monitor for instances where retailers were ‘opportunistically’ increasing prices. Picture: NewsWire/ Martin Ollman

NRMA spokesman Peter Khoury warned fuel prices were likely to increase, however not by as much as motorists feared.

On average, he said drivers were likely to pay about 8 centres more a litre at the bowser.

“Our regional benchmark – Malaysian Tapis – closed at $77 a barrel and we do expect it to go higher when the markets open tonight,” Mr Khoury said.

“But to put it in perspective, when we saw those really horrible record high prices back when Russia invaded Ukraine, Tapis was trading at $133 a barrel.”

However the closure of the Strait of Hormuz could send oil prices to more than US$100 a barrel, with the 32km stretch responsible for about 30 per cent of the world’s oil supply, and the primary shipping route for exports from Saudi Arabia, Iraq, the UAE, and Kuwait.

Originally published as Treasurer Jim Chalmers puts petrol stations on notice over fuel price spikes