Bold claim: Brisbane’s fuel prices jumped unhooked from any Middle East conflict, and the price surge has sparked a formal complaint to the consumer watchdog. If you’ve been filling up lately, you’ll want to see where this argument is headed. But here’s where it gets controversial: is there fair pricing, or are retailers taking advantage of a temporary market blip? This piece explains what happened, why it matters, and what might come next.
In Brisbane, the RACQ—the region’s leading motoring association—has formally referred petrol retailers to the Australian Competition and Consumer Commission (ACCC) over what it describes as unfair price increases that cannot be explained by war-related supply disruptions in the Middle East.
On Tuesday morning between 9:00 and 10:00, major fuel brands raised prices out of the usual cycle. Dr. Ian Jeffreys of the RACQ noted that, during the Brisbane pricing cycle, prices should have trended downward, not upward. Ampol initiated the price lift, with other retailers quickly following, pushing standard unleaded at the pump to as high as $2.19 per litre.
By Wednesday, Jeffreys reported a dramatic spread: about 260 Brisbane sites were charging $2.19, up from 40 sites the day before. The RACQ characterized this pattern as potential unconscionable conduct and lodged the referral with the ACCC for investigation.
Similar price movements were observed on the Gold Coast, according to the RACQ.
Despite the spike, consumers were advised not to panic about petrol supply, and the RACQ suggested that a price rally to $3 per litre was unlikely unless unfair pricing practices were involved.
Jeffreys emphasized that the fuel market has long been capable of delivering fuel reliably; there have been no notable supply constraints in Brisbane for decades. He noted that even as oil prices fluctuated—climbing by more than 10% at the outset of the Iran-related conflict before cooling—the market in Australia did not show corresponding shortages.
Analysts have warned that continued price increases could translate into about 10 cents more per litre for every additional $10 rise in Brent crude, a benchmark for international oil pricing.
Jeffreys also pointed to broader signals: New South Wales appeared to show similar pricing pressures, while Western Australia’s market, regulated locally, did not exhibit the same pattern. Historically, the RACQ has urged Queensland regulators to consider price controls—such as limiting daily price increases to five cents—as a way to curb abrupt spikes.
The RACQ indicated it remains engaged with policymakers, continuing to refine analyses and modelling to assess the potential impact of such regulatory measures on the market.
Thought-provoking takeaway: if price controls were in place, might they have prevented this latest surge, or would they have introduced other distortions? What do you think about government regulation of daily price movements in essential goods like petrol? Share your views in the comments.
— Nick Toscano
