The Victorian government has introduced new laws to cap fuel price increases, aiming to prevent price gouging at petrol stations. Premier Jacinta Allan announced the measures on Tuesday, as global oil prices surged following the closure of the Strait of Hormuz by Iran, a key passage for about a fifth of the world's fuel supply.
Under the new regulations, petrol stations must set their fuel price by 2pm each day for a 24-hour period starting at 6am the following day. Stations may lower prices during that period but cannot raise them above the set cap. Breaches will result in fines of at least $3,000 for individual stations, escalating to a minimum $24,000 fine if the matter goes to court.
Premier Allan stated, 'How often do you see a cheap price in the morning only for it to jump by the afternoon? We're stopping families from getting ripped off at the servo and helping them save hundreds a year.' Consumer Affairs Minister Nick Staikos added that the caps will help Victorians 'shop around for the best deal and put more downward pressure on prices.'
Each station's price cap will be published on the Service Victoria app via Servo Saver at 4pm. The app, launched in October last year, has reportedly saved Victorian drivers up to $333 a year at the pump. Government Services Minister Danny Pearson said, 'The Service Victoria app is putting fuel price information in your pockets to make life easier and more affordable.'
The move comes as global oil prices exceeded $US100 per barrel for the first time since the 2022 Russian invasion of Ukraine, pushing the average petrol cost in Australia above $2 per litre. The increased costs are expected to affect grocery prices as transport expenses rise. A South Australian truck driver reported his running costs doubling from $1,200-$1,500 to $3,000, with diesel at $2.40 per litre. Economists note that the impact on inflation will depend on the duration of the Middle East conflict, with a short-term disruption likely having limited effects.
