CANBERRA, ACT, March 12 -- The Treasurer of Australia issued the following transcript:
Note
Subjects: petrol prices, ACCC penalties for fuel retailers
Natalie Barr:
Fuel retailers could be slapped with a massive $100million fine for cashing in on the Middle East conflict to price‑gouge consumers. Treasurer Jim Chalmers has told service stations not to rip off drivers, warning the competition regulator will be beefing up its monitoring of unusual price spikes. The announcement follows customers paying as much as $3.40 a litre for fuel in regional areas.
For more, we're joined by Treasurer Jim Chalmers live in Canberra. Good morning to you, Treasurer. Is price gouging happening in Australia right now?
Jim Chalmers:
Good morning, Nat. Obviously, we're very focused on this challenge. We know that a lot of Australians are worried about what they're seeing at the petrol pump. I discussed these issues with Gina Cass‑Gottlieb, the Chair of the ACCC, before 6 o'clock this morning. And you're right to say in your introduction that we have announced some important new steps to crack down on any retailers who are doing the wrong thing.
We have doubled the fines, we've dramatically increased the surveillance of these suspicious price spikes that people are seeing in communities around Australia, and we've also empowered the ACCC to work closely with industry where there are shortages, particularly in regional areas.
And so, we're taking these important steps. It's for the ACCC to conclude whether there is price gouging underway, but we have certainly empowered them to get to the bottom of what's happening here, and we've taken those important steps because we recognise that Australians are concerned about this.
Barr:
Okay. We know you grew up in Logan, we've just had the Logan Mayor on, and he said he last week paid $1.70 for diesel, $2.40 this morning. Graham from the Gold Coast, a truckie, filled up 10days ago, diesel $1.65, yesterday $2.45. Is that price gouging?
Chalmers:
Well, that's for the ACCC to determine, but we are seeing those kinds of price rises; we don't dispute that. That's why we took those decisive steps that we took yesterday to dramatically increase the penalties for people doing the wrong thing.
The message from the Albanese Labor government is really clear to the petrol retailers: don't take motorists for a ride, don't treat Australians like mugs, do not use this opportunity of what's happening in the Middle East to do the wrong thing by people. But more than convey that message to the petrol retailers, we have taken these really important steps, just yesterday, not even 24hours ago, they build on the steps that we had already taken to make sure that people are getting fuel when they need it, that the prices are fair.
It's for the ACCC to determine some of those legal definitions around gouging and the like, but they've certainly got the tools. They've certainly been empowered, they've certainly got the fines and the ability to issue on‑the‑spot fines because of the changes that we made, because we share the concerns which are being relayed to us from around Australia.
Barr:
I know that they're going to make the final rule, though, but if it looks like a duck and walks like a duck, though, Treasurer?
Chalmers:
Well, we're concerned about these price spikes, and that's why we are taking the important and decisive action that we are taking to empower the ACCC to issue those bigger fines if they need to.
Barr:
Which is good -
Chalmers:
But also -
Barr:
But hang on, this war has been going on, what, for 2weeks now and we've had people writing in, as people would have been telling you, the prices at the bowsers have been high for days and days. People have just had to wear this, though, haven't they? Is it a bit late?
Chalmers:
Well, the steps we took yesterday weren't the first steps that we've taken. We had already increased the fines, we had already made it possible for the ACCC to issue on‑the‑spot fines, which is important as well.
Barr:
Has anyone been fined yet?
Chalmers:
Yeah, there have been fines issued. I don't think I'm able to go into the details of those. I'm not sure of the legal status of that. But there have been fines issued, as I understand it, as I'm advised.
But also, I mean, your viewers should know, Nat, you know, I was speaking to the ACCC before dawn this morning. Every day we are meeting as ministers. Minister Bowen and others, the Prime Minister, Minister Collins and others, have been engaged with the industry to make sure that we get supply to these areas where supply is a concern.
But I wanted to assure your viewers, Nat, that overall we have sufficient supplies of fuel. Where there are issues in particular areas around supply, we're working with the industry and the ACCC to address those gaps.
The international community has today been releasing heaps of barrels of oil into international markets, which is also a good development. We've got stockpiles in Australia, and the ships are arriving. And so, there are lots of reasons to be confident about the fuel supply overall. Where there are issues locally, we're working to address those issues, and where there are issues with pricing, we've certainly empowered the ACCC and given it the powers it needs, but also -
Barr:
Okay.
Chalmers:
- the ability to issue these big fines for anyone who's tempted to do the wrong thing.
Barr:
So do you think prices will go down?
Chalmers:
Well, at some stage they will, but I think as you said -
Barr:
But in the next few weeks?
Chalmers:
Well, it depends on the duration of the war in the Middle East. I mean, that really is the key unknown here. We've heard some comments from President Trump in recent days about the duration of the war, but that will determine how long these price pressures endure. There's a lot of uncertainty about that; there's a lot of volatility in the global oil market. Even in the last couple of days, we've seen the barrel price as low as the low $80 and as high as almost $120, and that shows how volatile the situation is.
But overall, the key thing that will determine how long these price pressures hang around for is how long the conflict itself endures.
Barr:
Okay. Treasurer, thanks for your time.
Chalmers:
Thanks, Nat.
Disclaimer: Curated by HT Syndication.
