Australian states expand fuel transparency rules

- Sydney (7 April) Update: Includes latest fuel shortage data from Minister for Energy Chris Bowen

Australia’s state and territorial governments have strengthened fuel price and supply chain transparency rules over the last two weeks in response to the ongoing US-Israeli war in Iran.

Western Australia’s (WA) government will require all fuel retailers in the state to fix prices for 24-hour periods by expanding the state’s FuelWatch scheme from 1 May, it said on 5 April.

Retailers covered by FuelWatch – currently including all metropolitan and 80% of regional outlets – need to set and report fuel prices over 24-hour periods, with non-compliant businesses facing A$4000 fines, WA’s government added.

WA’s government may further strengthen FuelWatch to require reporting of supply levels in the future.

The state is facing fuel supply challenges, with 29 stations out of unleaded petrol and 19 out of diesel on 7 April, according to Australia’s Minister for Energy Chris Bowen. Some industrial fuel users in the state have also reported challenges since late March.

Unleaded petrol prices at the state’s metropolitan fuel outlets averaged A$2.20/litre on 7 April, down from A$2.54/litre over 23 – 29 March, largely because of a A$0.32/litre nationwide fuel excise cut.

On 1 April, WA’s government also invoked emergency powers to access information about fuel supply chains.

“By activating powers available to me … I will be able to make orders compelling suppliers and distributors to provide critical information about fuel chain supplies across our state,” the state’s Energy and Decarbonisation Minister Amber Jade Sanderson said.

WA has not been alone in invoking emergency powers. Governments in the Northern Territory and New South Wales (NSW) have taken similar steps over the last week.

Fuel retailers in the Northern Territory will need to hand over data about their fuel cost structure and retail margins upon request, under the state’s Price Exploitation Prevention Act, Northern Territory Treasurer Bill Yan said on 31 March.

The territory’s government may also intervene to overrule retailers and set prices if it finds evidence of extreme price exploitation, Yan added.

At the moment, there is limited evidence of price exploitation in the territory. Its average unleaded 91 octane petrol price stood at A$2.68/litre on 7 April, down from A$2.76/litre on 31 March, though up from A$2.38/litre a month ago.

To the south, NSW’ Minister for Energy Penny Sharpe issued a more limited supply chain information directive on 20 March.

The state’s fuel companies have complied with the declaration, and the NSW Government is reviewing information to assess potential disruptions, Sharpe and NSW Premier Chris Minns said today.

Fuel prices in NSW – like in most other states – declined after Australia’s national fuel excise took effect on 1 April. The state’s average unleaded 91 octane petrol price averaged A$2.26/litre on 7 April, down from A$2.50/litre on 31 March.

Australian states and territories have coordinated with each other and the Federal Government since the US-Israeli war in Iran began.

Prime Minister Anthony Albanese convened a National Cabinet, including federal, state, and territorial leaders, on 30 March to approve Australia’s National Fuel Strategy (NFS), a plan to deal with current and future fuel challenges based on response levels.

Australia is at Level 2 of the NFS, indicating localised disruptions but functioning supply chains. At Level 2, state and territorial governments need to monitor fuel levels, share data, and consider regulatory changes. Meanwhile, the Federal Government will adjust fuel standards, engage foreign governments, and underwrite some fuel purchases.

By Avinash Govind