Watchdog to probe fuel suppliers’ behaviour

Source: Seven Network
The consumer watchdog has launched a probe into allegations of anti-competitive behaviour by major fuel suppliers amid supply issues triggered by the Middle East war.
It came as the federal government named former Australian Energy Regulator boss Anthea Harris as its fuel supply task force co-ordinator.
The developments follows concern about diesel availability to independent wholesalers and distributors servicing regional and rural parts of Australia.
“The ACCC is closely scrutinising all fuel markets during this period, and we have received reports of alleged anti-competitive behaviour. We are therefore investigating these matters urgently,” Australian Competition and Consumer Commission chair Gina Cass-Gottlieb said on Thursday.
“It is not our usual practice to publicly announce investigations, but given the significance of the issue, the ACCC is confirming this enforcement investigation. We recognise the widespread concerns held by consumers, businesses and farmers about fuel pricing and supply issues arising during the Middle Eastern conflict.”
The investigation will focus on major suppliers Ampol, BP Australia, Mobil Oil and Viva Energy.
“It is important that fuel market participants and the community know that we are closely watching market conduct in relation to all fuels and we will not hesitate to act swiftly to enforce Australia’s competition and consumer laws,” Cass-Gottlieb said.
Shortly after the ACCC announcement on Thursday, Prime Minister Anthony Albanese emerged from a hastily convened national cabinet meeting that had discussed major price shocks and shortages driven by the US-Israel war on Iran.
He named Harris, also a former Energy Security Board chief, to lead the taskforce, which he said was already operating.
“There is not less fuel in Australia today than there was three weeks ago. Every single ship that was due to land here has landed here, there is not less supply,” Albanese said.
“This has been an issue of increased demand … a doubling of demand and, in some cases, much more than doubling … that can mean there are shortages in some areas.”
He said the taskforce would examine recent distribution issues.
“I understand there are Australians in some parts of our nation that are really worried as they watch what is unfolding in the Middle East, and that is understandable,” Albanese said.
“But we’re doing all that we can to secure our fuel supply and to get it to the places that need it.”
On Wednesday, fuel companies and Energy Minister Chris Bowen struck a deal to release extra petrol and diesel to regional areas suffering critical shortages.
The deal was discussed at a roundtable convened by Transport Minister Catherine King, two sources familiar with the meeting said. It is yet to be formally announced by the government.
Agriculture Minister Julie Collins said there was a “clear picture” of regional areas that most needed fuel stockpiles to flow through, but the scale of the issue was still being worked through.
“We’ve got a clear picture at the moment about where we think it needs to go … but we are … looking and undertaking, as you would expect, due diligence,” she told ABC radio.
Collins said the government had a list of the most affected regions.
State leaders are demanding faster action and a long-term plan from the Commonwealth to deal with fuel shortages.
NSW Premier Chris Minns said Thursday’s meeting was an opportunity to deal with the challenges around fuel supply, particularly diesel.
On top of allowing fuel companies to release a week’s worth of petrol and diesel from their emergency stockpiles, the government has eased quality standards to allow more fuel into the market.
Western Australian Premier Roger Cook said he would use the meeting to raise concerns about the length of time taken to release fuel from the nation’s strategic reserves.
The Australian Trucking Association has called for disaster funding to be provided to transport companies, which are dealing with the rising cost of diesel, and a reduction in the road-user charge.
Logistics companies have warned they’re under significant pressure from fuel price rises, which will likely be passed on to shoppers.
-with AAP
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