The gap between what Krystallea Taniora expected to pay and what she actually faced at the bowser in Perth tells a troubling story about Australia's fuel markets in crisis. She arrived at a local retailer intending to fill her tank with petrol advertised on FuelWatch at $2.39 per litre, only to be charged $2.69 instead. The 30-cent jump within minutes exposed a vulnerability in even WA's relatively transparent system.
Her experience sits within a much larger problem. Between February 20 and March 11, Perth experienced the largest increase in average retail petrol prices of 59.5 cents per litre, the steepest rise across Australian capital cities. Perth experienced the largest increase in average retail petrol prices between February 20 and March 11, at 59.5 cents per litre. While international crude oil prices and geopolitical tensions explain much of this movement, price increases at the petrol pump have increased by up to 18 cents per litre more than wholesale prices in some locations, suggesting retailers are taking additional margin during volatile periods.
The paradox here cuts to the heart of fuel market regulation. FuelWatch mandates that fuel retailers notify prices for petrol, diesel, and LPG/autogas by 2:00 pm daily, enforcing a "24-hour rule" that fixes those prices from 6:00 am for the following day to curb intra-day spikes. In theory, Western Australian motorists have better protection than drivers in eastern states, where prices can shift multiple times daily. Yet even this safeguard has limits, particularly when demand surges and retailers face supply pressures.
Australia's fuel crisis deepened when Middle East conflict erupted in late February. Since the conflict commenced two weeks ago the Albanese Government has taken swift action to release up to 20 per cent of our diesel and fuel reserves to help address regional shortages, temporarily amend national fuel standards to keep more Australian-made fuels onshore, and crack down on petrol companies ripping off Australian consumers. The federal government yesterday announced it was temporarily lowering fuel quality standards for the next 60 days, opening up around 100 million litres of new petrol supplies a month. The government also released emergency reserves and appointed Anthea Harris as Fuel Supply Taskforce Coordinator – a new role, supporting the work governments around the country are doing to ensure Australia is overprepared and quick to respond when facing fuel and other supply chain challenges arising from the conflict in the Middle East.
Scrutiny of retailer behaviour has intensified. The ACCC launched an enforcement investigation, with the ACCC launching an investigation into claims of anti-competitive behaviour by each of the major fuel suppliers, covering Ampol Ltd, BP Australia Pty Ltd, Mobil Oil Australia Pty Ltd, and Viva Energy Australia Pty Ltd. According to ACCC commissioner Anna Brakey, fuel companies should be open and honest about the reasons for such widely varying and rapid increases across the country and treat their customers fairly.
The broader issue is structural. Australian retail fuel prices are largely determined by movements in international benchmark refined fuel prices (which are driven by international crude oil prices), and the AUD-USD exchange rate. But within those parameters, retailer decisions matter enormously. Some increases appear justified by supply disruptions. Others raise questions about whether retailers are using crisis conditions to restore margins that competitive pressure had compressed.
Taniora's complaint reflects the frustration many Australians feel when price signals send contradictory messages. The transparency FuelWatch provides matters; consumers in Perth have genuinely better information than those elsewhere. Yet information alone cannot guarantee fair pricing, especially when supply tightens and retailers exercise pricing power. The real test of the government's response will be whether measures succeed in keeping supplies flowing and prevent retailers from exploiting scarcity for excessive gain.