Federal Treasurer Jim Chalmers says the Australian government will take action against fuel suppliers accused of price gouging and vows to prosecute companies that “rip off” motorists.
Since tensions escalated in the Middle East, petrol and diesel prices in Australia have hit record highs, impacting both motorists and the transport industry.
Fuel prices are also rising in other countries, including the UK and the US, where they have reached around US$4 per gallon (A$5.83 per gallon or A$1.54 per liter).
However, according to the Australian Competition and Consumer Commission (ACCC), “reference prices for refined international petrol and diesel in Australia rose more than international oil prices in the early stages of the conflict”.
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Nationwide average gasoline prices for the week ending March 29, 2026 reached $2.53 per liter, up from $2.38 the previous week and $2.27 a month ago.
Diesel prices averaged $3.10 per liter, down from $2.82 the previous week and $2.58 last month.
The biggest retail increase was recorded in Perth, which saw a rise of 59.5 cents per liter between February 20 and March 11.
The increase prompted the ACCC to write to petrol retailers including 7-Eleven, Mobil, BP, Chevron, United Petroleum, Viva Energy and EG Australia, asking for transparency about how the price increases were determined.
“We know many consumers are doing it tough and are frustrated by the rapid changes they have seen. We expect petrol retailers to explain to us and the Australian public how they arrived at their prices,” ACCC Commissioner Anna Brakey said in a statement.
“Fuel companies should speak openly and honestly about the reasons for such widely varying and rapid increases across the country and treat their customers fairly.”
“We urge petrol retailers to explain their positions to the Australian community.”
Speaking in Parliament after today’s announcement of measures to tackle rising fuel costs and prevent supply shortages, Mr Chalmers said the Government would not tolerate price gouging.
“We are looking for the sources of some of these gouging… When we took office we increased the penalties and allowed the ACCC to issue fines on the spot,” he said.
The federal government also announced that it would halve the fuel excise tax on gasoline for three months from April 1, 2026.
The current excise duty of 52.6 cents per liter will be reduced to 26.3 cpl, reducing the cost of filling a 55 liter tank in Australia’s most popular passenger car, the Toyota RAV4, by around $14.47.
The road toll for vehicles over 4.5 tonnes gross vehicle weight will also be halved for the same three-month period to reduce transport costs and ease pressure on the cost of living across the economy.
Mr Chalmers was asked how the Government could ensure fuel retailers passed on these savings to the Bowser.
In response, he said the strengthened ACCC powers mean “they can hit anyone who does the wrong thing.”
Amid the wider fuel crisis, Federal Climate Change and Energy Minister Chris Bowen said Australia currently has about 39 days’ worth of petrol reserves and 30 days’ worth of diesel, noting fuel imports are at “record levels”.
Although these numbers are still stable, they fall well short of the International Energy Agency’s (IEA) requirement that member countries – including Australia – maintain net fuel imports for at least 90 days.
MORE: The Australian government cuts fuel excise tax as petrol and diesel prices rise due to the fuel crisis
