The Australian government has announced a proposed new bill that aims to double fines for unfairly raising fuel prices.
The move is seen as a direct response to global supply disruptions since the conflict in Iran that have affected fuel stocks, especially in rural areas.
Australia relies almost entirely on imports for its oil needs, with 84% of petroleum products sourced from abroad last year.
This dependence makes the country vulnerable to global market volatility.
Fears of supply disruptions have sparked panic buying, leading to a sharp increase in demand in some areas despite the government insisting supplies are still sufficient.
Treasurer Jim Chalmers has said the Treasury Laws Amendment Bill 2026 will introduce fines of up to $70 million for companies that engage in fraudulent conduct, mislead consumers or engage in cartel activity.
Companies can no longer use international conflicts as an excuse to raise prices at will.
The announcement follows investigations by the competition regulator into major fuel companies such as Ampol, BP, Mobil Oil Australia and Viva Energy over alleged anti-competitive practices.
The market situation has worsened as more than 100 petrol stations in Victoria have run out of stock, while hundreds of stations in New South Wales are facing diesel and petrol shortages.
The Labor government has also announced the release of domestic petroleum and diesel stocks and a temporary relaxation of fuel quality standards to boost supply.
However, paradoxically, these measures have highlighted Australia's vulnerability to external factors.
However, the steep increase in fines may only add to the pressure on companies already struggling with global supply challenges.
