Petrol suppliers hauled in by ACCC to explain fuel price hikes

The consumer watchdog has hauled in petrol companies and motoring groups to get to the bottom of fuel price spikes amid the war in the Middle East.

Deputy Prime Minister Richard Marles has ruled out fuel rationing at this stage, but has warned that the Government is wary as it was unknown how long the conflict will last.

The Australian Competition and Consumer Commission last week said petrol and diesel prices had risen as fast as wholesale prices – and in some cases more than that – in the fortnight after the US-Israel-Iran war began.

Prices in Perth jumped by a massive 59.5 cents a litre on average, the largest increase in the country.

The commission has asked big fuel suppliers, and major and independent retailers to a meeting on Tuesday to explain themselves.

Automotive groups and WA’s FuelWatch will also attend.

“Some of the steep increases in petrol prices we saw shortly after the outbreak of this conflict have really raised concerns at the ACCC,” Treasurer Jim Chalmers said.

The government has given the watchdog powers to increase surveillance of prices and doubled the fines for companies found using the war as an excuse to price gouge.

“Today the regulator will get a chance to make the retailers and suppliers justify their prices,” Dr Chalmers said.

“I’ve made it very clear that if they find evidence of misconduct, we expect the ACCC to throw the book at them.”

Mr Marles told Sunrise there wouldn’t be fuel rationing, having earlier failed to rule it out in an interview with the ABC.

“But clearly, you know, we are mindful of what’s playing out in the Middle East and, you know, we can’t say how long this conflict will go. And with that in mind, we are trying to make sure that we are as prudent as possible about what happens in the coming weeks and months,” he told Seven’s Natalie Barr.

“So no rationing at this stage?” she asked, prompting the blunt reply: “No”.