Consumer watchdog insists you don’t need to rush to the bowser following fuel excise cut

Servos have been put on notice as the consumer watchdog cracks down on retailers trying to profit at the end of the fuel excise cut.

Servos could be named and shamed if they engage in price gouging in the coming weeks, the consumer watchdog has warned.

Petrol prices are set to increase by at least 23 cents after the cut to the fuel excise expired overnight.

The tax cut was introduced six months ago by the former Morrison government to ease cost-of-living pressures.

But the $3bn price tag was too much for the new Labor government to entertain continuing it despite inflation continuing to rise.

Servos could be named and shamed. Picture: NCA NewsWire / Flavio Brancaleone

The Australian Competition and Consumer Commission (ACCC) has been tasked with monitoring the situation, tracking price increases in all capital cities and almost 200 regional locations daily.

Chair Gina Cass-Gottlieb flagged the watchdog was prepared to name and shame servos who engage in price gouging.

“If we see a rise that is other than we expect, we will certainly report it so that motorists know,” she told ABC Radio National.

“If we see an extreme rise, we will not only refer to the location, we will refer to the actual chain or service station that is doing so so that motorists basically know to avoid them.”

Gina Cass-Gottlieb says the ACCC is monitoring petrol prices closely. Picture: Sam Ruttyn

But motorists shouldn’t expect prices to jump immediately, as service stations use the last of the fuel they purchased at a cheaper wholesale price, Ms Cass-Gottlieb said.

“It will take some time, maybe up to a week or two weeks; it could be longer in regional areas,” she said.

When the fuel excise cut first came into place it took about six weeks for lower prices to be seen at the browser.

The ACCC expects a similar situation to occur now the fuel excise is reinstated.

“We don’t expect (higher wholesale prices) to necessarily be passed on. We expect there to be competition,” Ms Cass-Gottlieb said.

“Currently, prices are at the top of the cycle. We think retails can absorb that increase when they’re at the top of the cycle.”

She encouraged motorists to look at filling up at independent retailers and checking the ACCC website to ensure they’re getting the best deal.

But just how high prices could go, Ms Cass-Gottlieb said it would depend on competition.

Originally published as Consumer watchdog insists you don’t need to rush to the bowser following fuel excise cut