The federal government insists Australia’s fuel supply remains secure, even as shortages deepen across regional communities and farmers warn the situation could disrupt food production and supply chains.
Treasurer Jim Chalmers on Wednesday rejected claims of a national fuel shortage, saying recent disruptions were the result of panic buying and sudden spikes in demand rather than supply failures.
“We are not experiencing a fuel shortage but rather localised disruption due to significant spikes in demand,” Dr Chalmers said.
“Despite global price volatility, Australia’s fuel supply remains secure.”
While coastal supplies are not as dire as inland supplies, unreasonable price hikes are being seen along the coast. The Fuel Plus at Harrington drew considerable attention when it put unleaded above $2.50 and diesel above $3 a litre last week, at the time more than a dollar more than competitors, before dropping back to prices more in line with the market.
NSW Nationals Leader Gurmesh Singh said farmers and regional businesses were increasingly concerned they could run out of fuel within days.
“It’s deeply concerning to hear that the government still appears to be downplaying the seriousness of this issue,” Mr Singh said.
“Farmers and regional business owners are understandably worried about price gouging and running out of fuel within the next week, if not days.”
The ACCC will urgently meet with fuel market participants to seek more detailed explanations for recent pricing conduct during the current Middle Eastern crisis, amid consumer concerns about sudden petrol and diesel price spikes and distribution issues in regional and rural Australia.
“We know the impact that higher prices are having on Australian consumers. We have been watching pricing behaviour closely since the outbreak of recent hostilities in the Middle East and will take action against any case of misleading consumers about the reason for the steep and rapid increase in prices by individual retailers or any breaches of the competition provisions,” ACCC Commissioner Anna Brakey said.
“We are closely watching market behaviour and if there is conduct that is collusive or misleading or deceptive, we will investigate it and take action where appropriate.”
In addition, the ACCC is urgently exploring measures to assist with diesel distribution issues in regional and rural areas, in partnership with other relevant agencies.
“We are aware of concerning reports about diesel availability in regional and rural Australia. We know how critical diesel supply is to primary producers, transport businesses and many others, so we are prioritising our work to assist with this,” Ms Brakey said.
“We are now calling the industry into an emergency meeting to explain their actions during this period of volatility,” Ms Brakey said.
“The petrol industry should be under no illusions. We will act decisively and to the fullest extent of the law,” Ms Brakey said.
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