Watchdog to pursue AdBlue gougers

Angus Taylor has called in the competition watchdog amid a shortage of the diesel additive.

Angus Taylor says he intervened after hearing “truckies’ concerns about price increases” and to ensure “all AdBlue users are getting a fair deal on price”. Picture: Martin Ollman

Suppliers of diesel exhaust fluid found to be jacking up AdBlue prices and ­exploiting the global shortage in refined urea will be named and shamed, pursued for unconscionable conduct and slapped with heavy fines.

While AdBlue usually sells for around 50c to $1 per litre, truckies and transport companies across the country are reporting price spikes of more than 150 per cent.

Energy Minister Angus Taylor has called in the competition watchdog to monitor price ­gouging, amid a shortage of the AdBlue diesel additive used in agriculture and mining equipment, trucks and other vehicles.

Australian Competition and Consumer Commission chair Rod Sims said AdBlue producers pushing up prices to levels “most people would think is trying to ­exploit the national shortage” could be found to be engaging in unconscionable conduct or “named and shamed”.

Mr Sims said of the three tools available to the ACCC “the one I suspect we’re very unlikely to use is if you’ve got people colluding over prices”.

“I don’t imagine anyone silly enough to do that. But obviously if they did, we’d get them,” Mr Sims told The Australian.

“If we judge that it’s unconscionable to be pushing up prices in this crisis … we can take them to court and the fines are large. Unconscionable conduct is a high hurdle but that’s an option.

“The third option, which is even more readily available, is to name and shame and that’s quite powerful to do that.”

Mr Taylor said he intervened after hearing “truckies’ concerns about price increases” and to ensure “all AdBlue users are getting a fair deal on price”.

“I have written to the ACCC to express my concerns to ensure motorists are being adequately protected from any potential price gouging,” Mr Taylor said.

“This government is committed to protecting the livelihoods of Australian workers. While the market is tight, we will not allow consumers to be potentially taken advantage of. I can assure Australians that the government is working quickly and decisively to overcome AdBlue supply pressures.”

In his ACCC letter, Mr Taylor asked Mr Sims to consider “whether the recent increase in DEF prices may raise any competition or consumer protection concerns, including potential price gouging”.

“Industry stakeholders have reported that prices for DEF have quadrupled in parts of the country. While some temporary price increases are to be expected due to supply pressures, I am concerned that price gouging may be occurring in some instances,” he wrote. “It is important that transport operators and motorists are ­appropriately protected during this time, especially due to DEF’s importance to our transport and logistics sectors.”

Mr Sims said anyone concerned about high AdBlue prices should contact the ACCC because “the public are our eyes and ears”. “We don’t have to get in our cars and drive around and inquire about AdBlue prices. This will come in through the web forms very quickly if there’s issues out there. Then we can get in the car and have a look,” he said.

The outgoing ACCC chair said there was “quite a lot of competition” in AdBlue suppliers and they expected prices would go up given the supply shortages.

“It’s a judgment call as to when that is beyond the pale. There’s legitimate reasons why prices might go up. If you don’t have much supply left and you’ve got to ration it, that might take a bit more effort. It’s going to be people who are pushing prices up to a level that most people would think is trying to exploit the ­national shortage and that’s where it could amount to unconscionable conduct or at least see them named and shamed.”

The Morrison government last week announced it had struck an agreement with fertiliser manufacturer Incitec Pivot to ­secure local production of refined urea for AdBlue, which is used in modern diesel engines to “control nitrogen oxide pollutants” in trucks, buses, mining and agricultural equipment. Indonesia will provide 5000 tonnes of refined urea next month after the government asked for its help in ­response to AdBlue shortages sparked by dwindling supplies of compound urea in China.