ACCC warns retailers to pass on fuel cuts

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ACCC warns retailers to pass on fuel cuts
ACCC warns retailers to pass on fuel cuts
Brie Carter
Written by Brie Carter
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The Australian Competition and Consumer Commission has issued a stern warning to fuel retailers, demanding the immediate and full pass-through of a newly expanded fuel excise cut.

Following a deal between the states, territories, and the federal government, the excise has been reduced by an additional 5.7 cents per litre, bringing the total reduction to 32 cpl when combined with the initial 26.3 cpl cut implemented on April 1.

ACCC Chair Gina Cass-Gottlieb emphasised that the commission is monitoring prices daily across 190 regional locations and major capital cities to ensure consumers receive the intended relief.

While average retail prices in the five largest cities dropped significantly on April 1—falling by 16.7 cpl for petrol and 15 cpl for diesel—the ACCC remains concerned about inconsistent price movements in regional areas.

Parallel to price monitoring, the watchdog has served substantiation notices to several distributors across South Australia, Western Australia, Queensland, and the Northern Territory.

The businesses must now legally justify "fuel surcharges," some reportedly exceeding 70%, imposed on deliveries to remote communities.

Cass-Gottlieb warned that using volatile international refined fuel prices to "obfuscate" a failure to pass on savings, or raising prices shortly before offering a discount, could constitute misleading conduct under Australian Consumer Law.

The ACCC has granted the businesses three weeks to defend their levies, asserting that any surcharges attributed to rising fuel costs must be proportionate and verifiable, or face potential enforcement action.

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