Petrol Prices Skyrocket: Is It 'Price Gouging' or Just Market Adjustments?
March 4, 2026 — 11:56am
The recent conflict in Iran has caused a ripple effect on fuel prices across Australia, with more than half of the petrol stations in Sydney and Melbourne already raising their regular unleaded prices by 5-10 cents per litre. This surge has sparked debates about the ethics of 'price gouging' and the industry's response to global events.
Despite the Albanese government's warnings, experts and officials clarify that it takes at least a week for any price hikes to impact Australian fuel prices. However, new data from the National Roads and Motorists Association (NRMA) reveals a concerning trend.
In Melbourne, 50.3% of service stations have increased regular unleaded prices to $2.19 per litre or higher, while in Sydney, 50% are selling above $2.17 per litre. These prices are significantly higher than the average, leading the motoring group to accuse them of 'price gouging'.
NRMA spokesman Peter Khoury accused stations of manipulating price cycles, suggesting that the increase in prices is not justified by recent wholesale purchases.
"The stations are using the Iran conflict as an excuse to boost profits," Khoury claimed. "The fuel being sold at these exorbitant prices wasn't bought in the last 24 hours, so there's no valid reason for the hike."
Treasurer Jim Chalmers has instructed the national consumer watchdog to monitor these practices, emphasizing that retailers should not exploit the situation to exploit customers.
Energy Minister Chris Bowen addressed the public, urging against panic buying and assuring that there's no risk of fuel shortages. Despite this, long queues at petrol stations have been reported across the country.
Australian fuel prices fluctuate, with retailers often discounting fuel by a few cents daily to gain market share. However, Khoury points out that current prices are "way over where they should be," considering the relatively short time since the Iran conflict.
He acknowledges that not all stations are guilty, but warns that "sadly, too many are" engaging in price gouging. The Australian Competition and Consumer Commission (ACCC) has pledged to closely monitor fuel retailers' price movements, recognizing the complex relationship between international and wholesale prices and retail prices.
As the situation unfolds, the ACCC's vigilance will be crucial in ensuring fair practices and preventing further price hikes. The public is encouraged to be mindful of these price fluctuations and make informed decisions.
For more insights, readers can explore the work of business reporter Nick Toscano and climate and energy correspondent Mike Foley, who provide in-depth analysis on these issues.
