State government will force 1,500 petrol stations to report fuel prices a day in advance under ‘cost-of-living shake-up’
Petrol stations in Victoria will be forced to publicly report their fuel prices a day before they come into effect, with motorists then able to lock them in for 24 hours, under a “cost-of-living shake-up” announced by the state government.
The Victorian premier, Jacinta Allan, on Monday announced her “fair fuel-price plan” in Werribee, in Melbourne’s outer west, ahead of a crucial byelection in the area next month.
Under the plan, more than 1,500 fuel retailers across the state will be required to announce their prices ahead of time, with this data to feed directly into a new fuel-finder feature on the Service Victoria app, where motorists can lock in the prices for 24 hours.
“You know how much fuel prices fluctuate – under our plan, you can find out tomorrow’s fuel price at every single servo on your route to work and make your decisions accordingly,” Allan said.
“We know this won’t change everything for families who are doing it tough, but these savings can add up to hundreds of dollars a year.”
The change will come into effect in two phases over 2025, with mandatory reporting to begin first in “the next few months”, Allan said. The 24-hour price cap, as well as enforcement measures and penalties for fuel retailers who do not comply, requires legislation and will be subject to consultation with industry.
“This isn’t about punishing retailers. This is about helping motorists,” Allan said.
While several states require mandatory reporting of fuel prices, only Western Australia has a price cap in place, through its FuelWatch website.
There, motorists can view fuel prices for the following day, published at 2pm each afternoon. These prices are then “locked in” and remain fixed for 24 hours, starting at 6am the next day.
Insurer and roadside assistance provider NRMA welcomed Allan’s announcement, after having written to the Victorian government in October calling for the measure.
“This announcement takes the power out of the hands of oil companies and places it firmly in the hands of families desperately looking to save at the bowser,” the NRMA spokesperson Peter Khoury said.
“Families will no longer have to guess where to fill up as they will be able to access the price of every service station in real-time – this will deliver equal benefit to families in Melbourne and regional Victoria.”
The lobby group for petrol retailers, the Australasian Convenience and Petroleum Marketers Association, meanwhile, welcomed mandatory reporting but not the price freeze aspect of the announcement.
“Providing consumers with timely access to accurate fuel price information is a goal we strongly support. However, it’s equally important to ensure that any measures introduced do not inadvertently reduce competition in the fuel market, which could drive up average fuel prices,” the association’s chief executive, Mark McKenzie, said.
“Locking in prices for 24-hour periods limits the ability of the aggressive fuel discounters to further discount their prices if they discover that they are similar to that of their competitors, which means that they may well adopt more conservative pricing strategies.”
The Victorian Automotive Chamber of Commerce chief executive, Geoff Gwilym, echoed those concerns.
“While the intention to help consumers is admirable, we are concerned that mandating 24-hour price locks could actually remove the natural fuel cycles that often benefit consumers and potentially lead to greater price fluctuations as retailers try to manage their risk,” he said.
“This is particularly concerning for smaller, independent operators who operate on razor-thin margins.”
The opposition leader, Brad Battin, described the plan as “anti-competitive and desperate politics”.
“This policy has the potential to drive prices up,” he said.
The premier made the announcement at the Victoria University campus in Werribee, where a byelection will be held on 8 February.
The seat, which Labor holds on a 10.9% margin, was vacated by former treasurer Tim Pallas, who quit politics last month.
Labor’s candidate to replace him, John Lister, said the measure would have a “huge impact” in the area, where according to the 2021 census, 52.5% people use their car to get to work.
“The majority of people in this electorate do commute, either in the electorate or out of the electorate by car, and so it is a huge amount of their weekly budget, it can be over $100 every week,” Lister said.
Labor insiders have been concerned the party will face backlash in the area, where many people are doing it tough due to cost-of-living pressures and consecutive interest-rate rises.
Allan on Monday pointed to the government’s $400 school saving bonus and free registration for apprentices as ways the state has “provide[d] meaningful support to families during these challenging times”. She also urged the Reserve Bank of Australia to reconsider it’s approach.
“I’d hope the Reserve Bank have a deep consideration about the consequences and the real-life impacts their decisions have on families right across the country,” she said.
