Motoring groups and the ACCC outlined to fuel companies the impact that “rapid price spikes” and fuel supply issues are having on consumers and businesses around Australia.
At an emergency meeting convened by the ACCC in Sydney and Melbourne yesterday (17 March), ACCC Chair Gina Cass-Gottlieb reiterated that the consumer watchdog was closely monitoring behaviour in the fuel market during the current Middle Eastern conflict, warning companies against collusive, anti-competitive or misleading or deceptive conduct.
The meeting was attended by senior representatives from major fuel companies, wholesalers and retailers, who were asked to explain recent price hikes, including why prices moved more quickly than expected following increases in international crude oil, and refined benchmark prices.
“In the meeting, we were given important information about the supply chain, the volatility in international pricing and impacts on the Asian region which we will closely scrutinise,” says Ms Cass-Gottlieb.
Regional supply
Measures to address regional supply issues were also discussed.
“We reiterated that the ACCC stands ready to use its authorisation powers to assist with effective fuel distribution throughout the country. [The] meeting was important for our engagement with industry to support the consideration of any authorisation application,” says Ms Cass-Gottlieb.
“We understand the concerns of farmers, businesses and consumers about petrol and diesel supplies in regional locations. In [the] meeting we noted that independent suppliers with established relationships in regional areas are a crucial part of this market and need to be part of the solution to the supply issues, including by receiving adequate allocations from the major suppliers.”
‘Collusive conduct’
Ms Cass-Gottlieb says if the ACCC finds there is conduct that is collusive (“for example, any agreements to divide up or supply certain customers or set prices, or any other collusion in breach of competition laws”), the organisation will investigate it and take action.
“During this time and at all times, we encourage fuel companies to be accurate, open and honest about the reasons for price increases across the country and to treat their customers fairly,” she says.
Consumer reports
The ACCC outlined for the fuel companies some de-identified examples of consumer reports received about the impact of price increases and supply disruptions on households and businesses. The ACCC’s concerns were echoed by motoring organisations represented at the meeting.
“Since this crisis began, we have heard from many consumers who are concerned and frustrated about pricing conduct by retailers,” says ACCC Commissioner Anna Brakey.
“We urged the fuel companies to be open and honest with consumers about the reasons for their pricing decisions. During this challenging time, it’s important for all parties to work constructively and respectfully.”
The ACCC will publish the next weekly update of the monitoring report of fuel prices in Australian capital cities, with the inclusion of prices in 190 regional locations, on Friday.
