Crackdown Intensifies: Double Fines Target Unfair Fuel Pricing Amid Ongoing Crisis

The Senate has voted to significantly increase the maximum penalties that the consumer protection agency can impose for misconduct, amidst ongoing debates over reducing the fuel excise and concerns about possible fuel rationing.

Prime Minister Anthony Albanese, along with Treasurer Jim Chalmers, announced that the new measures aim to address “price gouging.” However, the Greens have criticized these changes as inadequate, while the opposition has accused the government of responding too slowly and sending “mixed messages.”

Authorities at every level are grappling with the inflationary pressures following Iran’s de facto blockade of the Strait of Hormuz, a crisis triggered by US and Israeli actions that resulted in the death of Iran’s former supreme leader.

The revised penalties address several issues, including making false or misleading claims about price hikes, engaging in price fixing, collusion, other forms of cartel activity, and the abuse of market power, alongside other anti-competitive practices.

Albanese emphasized that the newly enacted legislation would effectively tackle petrol price exploitation.

“We’re doubling penalties for companies doing the wrong thing,” he said.

“Because there’s no excuse for increasing profits at the expense of Australians.”

Labor Senator Katy Gallagher said the changes were about “making sure Australian families get a fair go”.

“My message to fuel companies is clear,” the finance minister told the Senate.

“If you do the right thing by your customers, our government is here to support you. But if you take advantage of foreign conflicts and take Australians for mugs, the ACCC will throw the book at you.”

“This so-called crackdown on price gouging is a con,” Queensland Senator Larissa Waters said.

“It will do nothing to stop price gouging, and it won’t stop corporations using the cover of war to rip people off.

“It does not do what it says on the tin. This legislation increases penalties for companies caught lying about ripping you off, but it doesn’t actually stop them from ripping you off, which it could do if the Greens’ amendment passes.”

The Liberals, meanwhile, accused the government of not taking the fuel crisis and its potential flow-on effects seriously enough, accusing it of “mixed messages” in its response.

“This is a government that has been caught flat-footed, asleep at the wheel and then in denial about the scale of this crisis,” Senator Jane Hume said. 

“Fuel costs are hitting farmers, manufacturers, freight and logistics. They’re hitting small businesses. 

“It’s an economy-wide impact that cannot be ignored, and these costs are being directly passed on to consumers.”

A state and federal fuels task force will meet tomorrow ahead of national cabinet next week.

The Commonwealth says supply is secure for now, but the states say distribution is still a major problem.

9News National Affairs Editor Andrew Probyn said he understood the taskforce would likely back a public dashboard to identify service stations that have fuel and those that don’t.

“But given this is quickly becoming a full-blown inflation shock, every jurisdiction is also war-gaming worst-case scenarios, everything from fuel rationing to COVID-style emphasis on essential services,” he said.

” … when or if they get implemented will, of course, be discussed by the premiers and the PM next week.”

Fuel outages across Australia

The latest figures for fuel outages across the country, as presented by Minister for Climate Change and Energy Chris Bowen today, are:

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