The ACCC has called an emergency meeting with fuel retailers over rapid hikes in fuel prices linked to the Middle East crisis.
Fuel prices across Australia have surged in recent weeks as conflict in the region disrupts global oil markets and shipping through the Strait of Hormuz. The Australian Competition and Consumer Commission is now stepping up its scrutiny of pricing behaviour, demanding that petrol companies explain the steep and sudden increases hitting consumers at the bowser.
The consumer watchdog confirmed it will begin publishing weekly market updates to give Australians greater transparency into how retailers are conducting themselves during the volatile period. This comes the day after the Victorian government passed sweeping new fuel price caps into law.
Stay up to date with what’s happening in and around Melbourne here.
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Treasurer intervenes on fuel prices
The crackdown comes after Treasurer Jim Chalmers wrote directly to ACCC Acting Chair Mick Keogh on 3 March, warning that the spike in international barrel prices should not be used as an excuse for retailers to gouge customers or inflate prices beyond the actual impact of the Middle East situation.
“I would expect the ACCC as the independent regulator enforcing Australia’s competition and consumer laws to investigate any concerns arising about misrepresentations regarding petrol prices, false and misleading conduct or anti-competitive conduct in petrol markets, and to take appropriate action,” Chalmers wrote.
Three days later, the ACCC’s CEO Sarah Proudfoot fired off letters to major fuel companies setting out the regulator’s expectations. The message was blunt: the ACCC does not expect to see “uncharacteristic and abnormal” wholesale and retail price increases that don’t accurately reflect movements in international fuel prices. Proudfoot reminded the companies that the ACCC holds extensive compulsory information gathering powers under the Competition and Consumer Act, and won’t hesitate to use them.
ACCC demands answers by today
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The ACCC gave fuel retailers a deadline of close of business today — 11 March — to explain their approach to local pricing, including how quickly international price movements are flowing through to the bowser in both metropolitan and regional areas.
ACCC Commissioner Anna Brakey isn’t mincing words. “We know the impact that higher prices are having on Australian consumers,” she said. “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.”
The regulator has also invited motoring organisations representing consumers to participate in discussions at the emergency meeting, alongside industry representatives. With Melbourne’s cost of living continuing to climb, every dollar at the pump counts for households already feeling squeezed.
Diesel shortages threatening regional communities
Beyond the petrol bowser, the ACCC is urgently looking into diesel distribution issues affecting regional and rural Australia. Diesel supply is critical for primary producers, transport operators and regional economies across Victoria and the rest of the country.
“We are aware of concerning reports about diesel availability in regional and rural Australia,” Brakey said. “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.”
The ACCC confirmed it can authorise coordination or distribution agreements between companies where doing so delivers a net public benefit, and said it stands ready to receive applications. The strain on regional businesses echoes the kind of cost pressures that have already forced one in four Melbourne live music venues to close since 2019.
Penalties for fuel companies set to double
The federal government is moving to increase maximum penalties for breaches of Australian Consumer Law and the Competition and Consumer Act by fuel companies. The cap would rise from $50 million to $100 million, and the ACCC says it will pursue the highest penalties appropriate in any cases it brings to court.
It’s not an empty threat. In February 2026, the Federal Court ordered Mobil Oil Australia to pay $16 million for making false or misleading representations about fuel sold at nine Queensland petrol stations. That penalty came after an ACCC investigation found the company had deceived consumers about additives in its fuel for close to four years.
How to find cheaper fuel in Melbourne
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The ACCC is urging Australians to use fuel comparison apps and the tools available on its website to shop around and locate retailers offering more moderate pricing. With pump prices sitting well above two dollars per litre in recent days, even small differences between servos can add up fast.
For Melburnians looking to cut transport costs altogether, free public transport for under-18s via the Youth myki program is already running, and the state’s expanded free weekend travel wrapped up earlier this year after 13 million trips were taken during the Metro Tunnel celebration period.
Fuel prices remain one of the most volatile contributors to household budgets, and the ACCC wants Australians to reward retailers offering competitive deals while it maintains pressure on the industry.
“The petrol industry should be under no illusions. We will act decisively and to the fullest extent of the law,” Brakey said.
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