Treasurer Jim Chalmers has reached out to the Australian Competition and Consumer Commission (ACCC), urging them to keep a close watch on fuel prices amidst rising global tensions. With the ongoing conflict in the Middle East potentially affecting oil markets, Chalmers cautioned fuel stations against exploiting the situation to unfairly hike prices.

The conflict involving the US, Israel, and Iran has caused oil prices to climb for the third day in a row. The Strait of Hormuz, a critical corridor bordering Iran through which about 20% of the world’s oil and gas is transported, has effectively been shut down.

Reports from Iranian media indicate that Iran has issued threats to target any vessel attempting to navigate this crucial passageway.

On Tuesday, Chalmers penned a letter to the ACCC’s executive director, seeking their vigilance. He emphasized, “Current developments should not serve as a pretext for retailers to exploit consumers or to inflate prices unjustifiably beyond the repercussions of the Middle Eastern events.”

Simultaneously, Energy Minister Chris Bowen engaged in discussions with oil refining companies, who assured him that oil supply would remain stable until at least May.

Bowen also reassured the public that Australia maintains a robust reserve of petrol, indicating no immediate concerns over fuel shortages in the nation.

He advised consumers that there was no need for “panic buying” and that doing so would only “make things get worse”.

“There’s no need to rush to the service station and fill up,” he said while speaking to reporters in Canberra.

Bowen said the refining companies told him they had no plans to increase the price of petrol until the price of oil increase flowed through to Australia.

“There will be impacts from this crisis on petrol prices, but we don’t want to see anybody profiteering unnecessarily or unjustifiably from this very difficult circumstance. I have great confidence that the refineries won’t be doing that.”

Some retailers in Sydney, Melbourne and Brisbane are selling E10 petrol for well over $2 a litre, with diesel prices even higher in some areas.

But economists said the high costs were driven by the regular price cycle, with further cost increases from the Middle East war yet to hit Australian commuters.

— With additional reporting by the Australian Associated Press.

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