The Australian government has announced its intention to double maximum penalties for anticompetitive conduct and enhance Australian Competition and Consumer Commission ("ACCC") fuel price surveillance.
On 11 March 2026, the Australian Treasurer, jointly with the Minister for Climate Change and Energy and the Assistant Minister for Competition, announced a package of measures to address fuel pricing and supply concerns. The announcement follows significant volatility in global oil prices driven by conflict in the Middle East.
The government's announcement comprises three core elements:
- Doubling of maximum penalties: The government will double maximum penalties under the Competition and Consumer Act 2010 (Cth) for false or misleading conduct and cartel conduct, raising the cap to A$100 million (about $70 million USD) per offence. This follows a 2022 increase to A$50 million (about $35 million USD), itself five times the previous maximum. Other penalty caps of: three times the value of the benefit obtained; or 30% of a corporation's adjusted turnover, will continue to apply, and the maximum penalty per offence is the maximum of the three caps.
- Enhanced ACCC monitoring: The ACCC will ramp up fuel price monitoring, reporting weekly with a focus on unusual price spikes. This supplements its existing petrol price monitoring powers and recently acquired ability to issue on-the-spot fines.
- Industry coordination on supply: The government will work with industry to increase fuel supply to service stations, including by helping the fuel sector secure ACCC authorization to coordinate supply and address bottlenecks.
Practical Implications
The doubled penalties to A$100 million per offence apply economy-wide, not just to the fuel sector. Companies operating in Australia should review their competition compliance programs in light of this significantly increased exposure.
Fuel retailers and suppliers should expect heightened ACCC scrutiny, particularly regarding pricing practices during periods of global volatility.
Since the announcement on 11 March, the ACCC has conducted highly publicized consultations with major fuel suppliers and has also recently announced an investigation into major fuel suppliers for anticompetitive conduct. This development is the latest in a series of steps that the Australian government has taken to empower the ACCC with greater abilities to regulate businesses in Australia.
It is anticipated that legislation will be introduced in the coming weeks to bring the increased penalties into law.
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