Treasurer Jim Chalmers has cautioned petrol station owners against taking advantage of motorists as global oil prices rise sharply due to the conflict in the Middle East.
Chalmers also flagged that persistently high oil prices could worsen inflation, complicating efforts by both the government and the Reserve Bank of Australia to ease financial pressures on households.
“The situation in the Middle East is deeply concerning, and our primary focus remains on the human cost of the conflict. However, the economic impacts from the escalation are significant too,” Chalmers stated on Thursday.
Over the past week, oil prices have surged by 7%, with market fears growing that Israel could target Iran’s oil facilities, or that retaliatory actions could lead to a broader war in the region.
Chalmers acknowledged that while petrol prices had recently been lower than in previous years, the current spike was understandable. However, he stressed that businesses should not engage in price gouging.
“We’re clearly concerned about rising global oil prices, but we don’t want to see petrol stations exploiting Australian motorists,” he said. “People are already under immense pressure, and service stations should not take advantage of the situation.”
Australian Competition and Consumer Commission (ACCC) chair Gina Cass-Gottlieb confirmed that the regulator closely monitors petrol prices and regularly reports them to both the public and the Treasurer.
“Our monitoring ensures transparency and provides consumers with clear scrutiny of the market,” Cass-Gottlieb said.
Chalmers also noted that for Australia, a sustained 10% increase in the price of a barrel of oil would likely result in a 0.4 percentage point rise in the consumer price index over the course of a year.
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