Anti-gouging laws put fuel prices under the microscope

New laws are protecting Victorian motorists at the fuel bowser as prices continue to soar.

The average price of fuel has risen past $2 a litre in all major cities across Australia, leading to accusations of price gouging.

New anti-price gouging laws came into effect on this month creating stronger protection for fuel users.

The new reforms include a maximum daily fuel price and require fuel retailers to report their prices daily.

The information is then made available to residents via the new Servo Saver application.

Via the application users can compare the price of fuel at over 1,500 service stations statewide, with confidence prices won’t increase for 24 hours.

APCO director Peter Anderson said last week the company is reacting to changing oil prices out of the Middle East.

“Our approach has always been to price fairly and responsibly,” Anderson said.

“We are not increasing margins to take advantage of the situation – that simply is not in our DNA.”

Since the new laws came into effect, Consumer Affairs Victoria has carried out 289 field inspections to make sure fuel retailers are registered and are reporting.

In one week, it found 23 unregistered fuel stations and 16 were identified as not reporting.

This data will be passed onto the Australian Competition and Consumer Commission (ACCC) as evidence to investigate the pricing strategies used every day across the state.

While day-to-day demand for fuel has not increased – despite some stations temporarily running out of fuel – the government is preparing for potential major disruptions to supply chains.

A statement released by the ACCC suggests local fuel prices were increased on the same day as wholesale prices, rather than lagging like usual.

ACCC commissioner Anna Brakey said it raised concerns about price movements.

“The impacts on average retail petrol and diesel prices varies between cities and average prices are changing daily. The market is highly complex and volatile, which we know is adding to consumer concerns,” Brakey said.

“We know that many consumers are doing it tough and are frustrated by the rapid changes they have seen. We expect petrol retailers to explain to us and the Australian public how they have arrived at their prices.”

Consumers can access the Servo Saver application via Services Victoria.