Fuel retailers accused of jumping the gun on petrol price hike, Anthony Albanese threatens to ‘clamp down’

Anthony Albanese has fired a warning shot at petrol stations amid reports some sent fuel prices surging before the introduction of a 23 cent hike to fuel excise.

Anthony Albanese has put petrol companies on notice after reports that motorists are being hit with big price hikes even before the introduction of a 23 cent hike to fuel excise.

Speaking today on 5AA, the Prime Minister said it was a concern that authorities are taking a close look at.

“That’s why we are getting the ACCC to really monitor all of the costs of fuel to make sure that there isn’t a ripping off of consumers,’’ he said.

“And we’ve really ramped that up. I would say to any operators out there who are thinking of taking a windfall gain, that the ACCC will clamp down on you.”

The Albanese government reinstated the petrol tax excise from midnight, after it was temporarily cut in the lead-up to the election.

The $3 billion dollar cost of living relief measure ended on Wednesday night. Many petrol stations appeared to have already increased prices ahead of the change.

Petrol chaos in Granville. Two hours before the full petrol tax is reinstated, there’s a 500 metre queue near the Woolies supermarket for cheap petrol. Intersection at a gridlock. E10 unleaded is selling for 154.9 cents at the Powerfuel service station. Unleaded 91 - none left. pic.twitter.com/DEpRTVuNjB

— Brenden Wood (@BrendenWood) September 28, 2022

Despite the early price surge, desperate motorists were seen in “chaotic” queues late on Wednesday night in a bid to snag cheaper petrol.

Dozens of cars were stuck in gridlock outside a Melbourne Costco petrol station, while there was a 500 metre queue outside a western Sydney station offering E10 petrol for 154.9 cents a litre.

“Petrol chaos in Granville... Intersection at a gridlock. E10 unleaded is selling for 154.9 cents at the Powerfuel service station. Unleaded 91 - none left,” tweeted Brenden Wood.

There were huge queues for cheap petrol at this Costco petrol station in Melbourne on Wednesday night. Picture: Reddit

Queues stretched for 500 metres outside this petrol station in western Sydney on Wednesday night. Picture: Twitter

NRMA spokesman Peter Khoury said that prices in Sydney, Brisbane, Melbourne and Adelaide were already way too high.

“The averages have gone way above what we expected for the high point of the cycle, and we know that there is more pain to come,” Mr Khoury said.

“To be as high as we are today is unacceptable.

“Petrol is a major cause of concern for families – it is one of the main factors that is driving cost of living pressures in Australia. We cannot afford and should not be paying $1.90 on average anywhere in Australia.”

Treasurer Jim Chalmers said on Wednesday that the government was “under no illusions about the impact that this will have on family budgets”.

“We don’t pretend that this won’t make things more difficult for a lot of Australian motorists,’’ he said.

“There are substantial pressures already on the budget. We can’t fund everything that Australians would like us to fund.”

Last week, the Treasurer predicted the reintroduction of fuel excise would be a slow burn.

“Industry estimates that there will be more than 700 million litres of lower-excise fuel in the system when the fuel excise is reintroduced,’’ Dr Chalmers said.

“This is 700 million reasons why the price should not shoot up by the full 23c on the night that the excise relief ends.”

E10 and U91 prices have been on the rise for several weeks. Picture: FuelCheck NSW.

Petrol prices are rising even before the fuel excise increase takes hold. Photo Steve Pohlner

But despite predictions there’s five days worth of cheap retail petrol that still needs to be sold after the price hike kicks in, it’s now clear that prices are already rising in some states.

“What we expect to see here is huge volatility,’’ Australasian Convenience and Petroleum Marketers Association chief executive Mark McKenzie said.

“For short-term pain, to keep customers, some retailers may cop a bit of loss.

“It’s counterintuitive and it will vary. Ultimately we expect it will go up.”

His advice to motorists is simple.

“Use a fuel price app, we’re expecting significant volatility in the period leading up to and after the excise cut,’’ he said.

“There will still be bargains after the cut because we expect to see retailers that will still have the low excise fuel. So shop around. It will not be geography, it’ll be individual businesses within areas.

“The second thing is to watch the fuel price cycle. So the fuel price cycle at the moment has increased in Sydney, Brisbane and Melbourne.”

Originally published as Fuel retailers accused of jumping the gun on petrol price hike, Anthony Albanese threatens to ‘clamp down’