‘Taking advantage’: ACCC investigates fuel surcharges as diesel prices surge despite government excise cut relief

Price gouging concerns are intensifying as the fuel crisis continues to ripple through the economy, with the consumer watchdog closely monitoring businesses, including cafes and restaurants, introducing “fuel surcharges”. The global fuel shock sparked by the Iran war has reignited accusations of price gouging across Australia, as motorists and businesses face extreme price swings, supply shortages and uneven relief at the bowser. As of mid-April, the average price for regular unleaded in Sydney sat at 218.3 cents per litre, while diesel averaged 318.1 cents, highlighting a widening gap between petrol relief and diesel strain. The ACCC has been closely monitoring the fallout, warning that while government fuel tax cuts have flowed through to petrol prices, diesel relief has been largely wiped out by surging international benchmark costs. Its latest weekly report found petrol prices in major cities had fallen almost in line with the 32 cents per litre excise reduction introduced by the federal government, but diesel prices had dropped only marginally due to global supply pressures. The uneven relief has intensified scrutiny of pricing behaviour at the retail level, with regulators warning that some operators may be taking advantage of volatility. In the hospitality sector, cafes and restaurants are also beginning to add a “fuel surcharge” to their costs, with some ranging from 1 per cent to 5 per cent. Australian Restaurant and Cafe Association chief executive Wes Lambert previously urged businesses to consider introducing a temporary surcharge to offset rising costs. “Fuel touches everything in hospitality – every delivery, every supplier, every ingredient and every collection truck that pulls up behind a venue,” Mr Lambert said. “If government won’t stabilise costs, businesses must be allowed to survive them.” He said a surcharge could help operators remain viable despite costs “they can’t control”. John Hart, president of Restaurant and Catering Australia, criticised the idea of a collective surcharge, warning it could raise competition concerns. “I would think that any attempt to set a price or a surcharge, between a group of operators and/or an association could be considered anticompetitive,” Mr Hart told news.com.au. Mr Hart warned the ACCC would likely take a close interest in any co-ordinated pricing behaviour, with the watchdog already moving to examine fuel-related surcharges. On April 2, the ACCC issued substantiation notices to several regional and remote businesses over the use of large fuel levies and surcharges. The watchdog said it was aware of some cafes and restaurants adding “fuel surcharges” without giving consumers adequate notice and warned businesses not to falsely attribute excessive price increases to rising fuel costs, even where operating expenses have genuinely increased. “While many business costs have genuinely increased, the ACCC reminds businesses not to take advantage of this by claiming excessive price increases are due to increasing fuel costs unless this is actually the case,” the ACCC said in its recent report. “The ACCC is also aware of some cafes and restaurants imposing ‘fuel surcharges’ on food and drinks without prior or sufficient notice to consumers,” it said. “We will not hesitate to take action if businesses are taking advantage of the current situation to engage in conduct that breaches competition or consumer protection laws.” Across the broader fuel market, the ACCC has warned fuel wholesalers and retailers it “will not hesitate to take appropriate enforcement action” against any false or misleading claims about passing on the fuel excise savings to consumers. With the excise cut set to expire on June 30 and global oil markets still volatile, economists warn Australians could face further price shocks unless international conditions stabilise or domestic intervention is extended.