Australian watchdogs are monitoring rising domestic petrol prices amid the ongoing conflict in the Middle East. Photo / 123rf
Australian watchdogs are monitoring rising domestic petrol prices amid the ongoing conflict in the Middle East. Photo / 123rf
Australia’s consumer commission has warned petrol companies not to over-inflate domestic fuel prices before the expected shock to the global market.
Petrol prices worldwide are expected to skyrocket as the conflict in the Middle East continues, with Iran’s Revolutionary Guard claiming it will destroy any ships attempting to travel throughthe Strait of Hormuz.
As 20% of the world’s oil and gas is shipped through the Gulf waterway, the shutdown will effectively strangle global supplies of the energy products.
ABC News has reported that fuel stockpiling has already been seen in several states but Energy Minister Chris Bowen said “there is no need for panic”.
Australian oil supplies are not expected to be affected by the conflict for the time being, with sufficient stock to last through May.
NRMA spokesman Peter Khoury told news.com it usually takes between seven and 10 days for any increases in global petrol prices to be reflected domestically.
But Australians in remote regions of the country have already been paying as much as A$4 ($4.76) for a litre of petrol and prices in all five major cities are rapidly increasing.
The price cycle was expected to hit a low in Southeast Queensland this week, but according to ABC News, 210 service stations actually increased their price per litre.
“The price cycles in Sydney, Brisbane and Melbourne have left families in those cities worse off, and oil companies are using the Middle East crisis as an excuse to jack up margins,” Khoury said.
Australians have been seen stockpiling petrol as they anticipate price rises while war in the Middle East wages on. Photo / Facebook
He has called on the Australian Competition and Consumer Commission (ACCC) to intervene, describing the prices an example of “ridiculous” price gouging.
“We are in the middle of this conflict, and we know things are going to get worse,” he said. “The servos and operators who are inflating prices know who they are. This must stop immediately.”
The ACCC confirmed petrol prices are being monitored “closely”, with Commissioner Anna Brakey noting it has written to several petrol companies to remind them of their obligations under Australian law.
“While these international costs are largely outside the control of local petrol retailers, we remind retailers that making false or misleading statements to consumers about the reasons for price increases would be in breach of the Australian Consumer Law.”
She said the commission “will not hesitate to take action if representations and market behaviour by a petrol company contravene competition and consumer laws”.
Members of the political sector also had stark words for local oil companies.
“Do not put up your prices simply because people are worried about their future,” Western Australian Premier Roger Cook said. “You have sustainable supplies of fuel for the moment.”
