Australia Moves to Double Penalties on Fuel Price Gouging

Australia’s centre-left government has introduced a new law in Parliament to crack down on fuel price gouging, as global supply disruptions linked to the Iran conflict have started affecting fuel availability in parts of the country.

The proposed Treasury Laws Amendment Bill 2026 aims to double penalties for companies found guilty of unfair pricing practices. Under the new rules, businesses could face fines of up to A$100 million ($70 million) for misleading conduct or cartel behaviour.

Australia depends heavily on fuel imports, with about 84% of its petroleum demand coming from overseas. This makes the country vulnerable to global supply shocks. Recent fears of shortages have triggered panic buying, with fuel demand doubling in some regions despite government assurances that supply remains stable.

Treasurer Jim Chalmers said companies must not take advantage of the overseas conflict to increase prices unfairly. He urged opposition leaders to support the bill, stating that the move is necessary to protect consumers and ensure accountability in the fuel market.

The legislation comes shortly after Australia’s competition regulator launched an investigation into possible anti-competitive practices by major fuel suppliers, including Ampol, BP, Mobil Oil Australia, and Viva Energy, which operates Shell and Liberty service stations.

Fuel shortages have already been reported in several areas. In Victoria, more than 100 service stations ran out of petrol, while in New South Wales, 165 stations were without diesel and 298 were missing at least one type of petrol.

To manage the situation, the government has announced plans to release fuel from domestic reserves and temporarily relax fuel quality standards to boost supply and ease pressure on the market.