Victorian Premier Jacinta Allen has announced a bold plan to ease cost of living pressures on the state’s motorists, with a Fair Fuel Plan to be introduced this year.
Should the legislation pass in Victorian Parliament, it would require fuel companies to publicly report upcoming fuel price changes the day before they’re implemented, then lock in that price for 24 hours.
There are currently more than 1500 fuel providers in Victoria, all of whom would be required to provide real-time data to the state government which would be fed to a fuel finder feature on the Service Victoria app.
This would be a step above the capability of third-party services like PetrolSpy, where users submit price changes after they’ve been made.
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Based on 2023 data from the Australian Competition and Consumer Commission (ACCC), Melbourne motorists could’ve saved up to $333 annually if they were better-informed as to when the cheapest point of a fuel cycle was.
A specific time has not been set for the Fair Fuel Plan to be implemented, but the state is targeting for it to be phased in throughout 2025.
“To help you save money at the servo, we will require fuel companies to publicly report their price changes the day before – and lock them into that price for 24 hours,” Premier Allan said in a media statement.
“You know how much fuel prices fluctuate – under our plan, you can find out tomorrow’s fuel price at every single servo on your route to work and make your decisions accordingly.
“We know this won’t change everything for families who are doing it tough, but these savings can add up to hundreds of dollars a year.”
While the announcement was partially welcomed by the Victorian Automotive Chamber of Commerce (VACC), the organisation criticised the government for its lack of prior consultation with industry.
“The proposed regulations, while well-intentioned, could have significant operational impacts on small business operators,” said VACC CEO Geoff Gwilym.
“For example, the requirement to lock in prices 24 hours in advance doesn’t account for sudden changes in wholesale prices, which could put considerable pressure on smaller operators who lack the financial reserves of major fuel companies.
“VACC and our members look forward to sharing our decades of industry experience with the Victorian Government as these important reforms are developed.
“Through meaningful consultation and collaboration, we can help shape a system that achieves transparency for consumers while ensuring our vital network of local fuel retailers continues to serve communities across Victoria.”
It’s not the first time an Australian state has targeted fuel prices to drive down the cost of living.
In August last year, then-Queensland Premier Steven Miles proposed the establishment of 12 state-owned fuel stations, working on a cost-recovery basis while selling petrol and diesel.
Mr Miles said at the time this would result in greater competition and lead to privately owned fuel stations bringing down their prices, delivering savings for motorists.
While this announcement was made just prior to Queensland’s state election – which Mr Miles and the Labor Party subsequently lost – Ms Allan’s Fair Fuel Plan was made well over a year before Victorians next head to the polls.
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