Competition and consumer watchdog keeping an eye on soaring fuel prices

The Australian Competition and Consumer Commission (ACCC) is monitoring increasing fuel prices and sales across Australia as costs soar and supplies tighten.

Global oil prices surged to nearly $US120 a barrel on Monday, as the war in the Middle East disrupts shipments through a key shipping lane. 

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Economists have warned inflation could peak above 5 per cent as fuel prices rise, with some bowsers already showing prices of up to $2.59 a litre for diesel in some places.

And while consumers and businesses are feeling the pain, the ACCC is keeping a close eye on dealings to ensure price hikes are justified.

Motorists are stockpiling fuel as prices go up and shortages hit. (ABC News: John Gunn)

The watchdog has written to fuel companies requesting information about their fuel reserves and the prices they are charging.

ACCC deputy chair Mick Keogh said the consumer body was ensuring everything was above board. 

“We’re going to understand if those prices [in Australia] seem out of all kilter with the sorts of international trends that we’re seeing,” he said.

Mr Keogh said the ACCC was also watching to see whether companies were acting fairly.

“There may also be situations where anti-competitive behaviour is occurring,” he said. 

“For example, an importer no longer supplying independents and only supplying their own outlets.”

Federal Energy Minister Chris Bowen said Australia had good stock levels of petrol, diesel, and jet fuel, but acknowledged the country was facing a surge in demand.

Mr Keogh said Australia consumed about twice as much diesel as petrol.  

Mick Keogh says the ACCC is investigating if fuel price rises are fair. (ABC News: John Gunn)

Panic buying drains fuel supply

On the New South Wales Mid North Coast, the Glenreagh General Store is the only source of fuel in town.

“We sold out in two days,” store owner Terry Powick said. 

“We’ve owned the business now for two and a half years [and] I’ve never sold out in two days.

“I think it’s just a lot of panic buying coming out.”

Mr Powick is expecting a small delivery of diesel and unleaded fuel today.

Terry Powick is hoping for a fuel delivery today. (Supplied: Terry Powick)

In the NSW north-west, the Croppa Creek Store is prioritising essential services at the bowser.

“The rationale behind it is to keep a wider variety of people rolling, so that we can not so much ration out the fuel, but just allow it to be fairly dispersed,” store owner Carolyn Bellman said.

“[But] there’s a lot of essential businesses that rely on the fuel here.”

Carolyn Bellman is trying to share the fuel supplies around. (Supplied: Carolyn Bellman)

Victorian orchardist Andrew Plunkett said he was caught “on the hop” by how quickly fuel prices went up.

“In the last week, it’s around 50 cents [more] on the wholesale price for us,” he said.

Mr Plunkett grows and packs fruit on his property near Shepparton, before trucking the bulk of it to Sydney and Brisbane.

He gets up to 30,000 litres of diesel delivered to his place at a time, and at the latest price, he will be paying “$10,000 to $20,000” more per week.

Apples grown at Plunkett Orchards are sent to supermarket distribution centres in Sydney and Brisbane. (ABC Rural: Justine Longmore)

And it is not a cost Mr Plunkett can pass on easily.

“Our costs that we arrive at with supermarkets is based on delivery to [distribution centres] in each of those capital cities,” he said. 

“Unfortunately, for the time being, we’re absorbing all of it.”

Additional reporting by Claire Simmonds, James Paras and Warwick Long