The Tasmanian government has announced it will change emergency fuel laws to allow the government to cap fuel prices.

The state, like the rest of the country, is facing rising fuel prices due to the war in Iran and it is unclear when the situation will resolve.

According to the state government’s fuel check app, the average price of unleaded 91 fuel in Tasmania is currently $2.51 per litre.

Fuel prices electronic display board.

Tasmanians are being urged to use the FuelCheck app to search around for the cheapest petrol prices. (ABC News)

A quick scan shows prices as high as $2.87 per litre.

Premier Jeremy Rockliff has been pushed in parliament in recent weeks about what he will do to try and ease the pressure on Tasmanians.

In a ministerial statement before question time today, Mr Rockliff told parliament the state’s fuel supply remains secure.

“We have sufficient fuel on island and more on the way,” he said.

Travel bookings cancelled as fuel crisis deepens

Rising fuel costs and concerns about supply affect the wider Tasmanian economy, and some service stations run out of unleaded petrol.

“There is no need for stockpiling, which only increases pressure on the system.”

He said in response to the pressures faced by Tasmanians, the government had introduced new legislation to “improve transparency, strengthen compliance, and enhance Tasmania’s ability to act during fuel disruptions”.

“It enforces clearer rules for fuel companies to report on supply levels and introduces penalties should they fail to do so,” Mr Rockliff said.

A petrol station

Premier Jeremy Rockliff says there is “sufficient fuel” in Tasmania to meet demand, with more on the way. (ABC News: Ebony ten Broeke)

“It allows the government to get important information quickly.

“And it strengthens our emergency powers.”

The bill, which was tabled in parliament today, would update the state’s emergency fuel laws so restriction periods can last longer and the government is able to “temporarily set maximum fuel prices to protect customers from unreasonable spikes”.

“This bill gives Tasmania stronger tools to keep fuel companies accountable, protect consumers, and act decisively during supply risks or emergencies,” Mr Rockliff said.

The government has not made clear what unreasonable spikes are.

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The bill is expected to be debated in parliament’s lower house tonight.

Calls for fuel excise cut

The government has also written to the ACCC asking that it closely monitors the fuel market to prevent price gouging or anti competitive behaviour.

Mr Rockliff encouraged Tasmanians to check fuel prices on FuelCheck Tasmania and said the government is working to ensure fuel outages are promptly reported on the app.

A petrol station

A car filling up with expensive petrol in Tasmania. (ABC News: Ebony ten Broeke)

However, calls from Federal Energy Minister Chris Bowen to encourage state service workers to work from home to conserve fuel have not been heeded.

Mr Rockliff told parliament it was his understanding that public servants have flexible work from home conditions already and no directive had been made.

PM calls second emergency national cabinet meeting over fuel crisis

States and territory leaders will meet next week to further coordinate the national response to the fuel crisis as the fallout from the Iran war continues to escalate.

“Employees who are in the public service can speak to their managers, as I understand it, to arrange flexible working arrangements for them, themselves and their family, but also the stated intent behind your question around saving fuel,” he said on Tuesday.

The premier added that the federal government was responsible for fuel regulation and urged it to reduce the fuel excise.

The fuel excise means 51 cents in the cost of every litre of fuel goes to the federal government.

That tax was halved in 2022 to ease the cost of living.

The state government wants it to be cut completely.

A man wearing a suit speaks with one hand outstretched, with two people and flags in the background.

Premier Jeremy Rockliff says a fuel excise cut would help reduce petrol prices, a move the federal government has ruled out. (ABC News: Ebony ten Broeke)

“We respect the federal government’s efforts to manage a complex national situation, but we urge them to move with greater pace and clarity,” Mr Rockliff said.

“We also continue to call on the federal government to reduce the fuel excise while the current situation remains volatile.

“This will give Tasmanians real price relief.”

Earlier this week federal Treasurer Jim Chalmers said it was not under consideration.

The prime minister has called a second emergency cabinet meeting about the fuel crisis which will be held next week.

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