Fuel price cap failing regional Victorians as supply concerns grow

The Allan Labor Government’s daily fuel price cap has failed to prevent fuel price gouging in regional Victoria, with growing concerns about fuel access for independent retailers and farmers.

Member for Euroa Annabelle Cleeland said major fuel price increases were occurring at the same time independent fuel retailers across regional communities were struggling to access supply.

“These independent retailers are the very businesses that deliver fuel directly to farms ahead of sowing and harvest,” Ms Cleeland said.

“Right now the issue isn’t simply price. We are also facing an access crisis that is directly harming regional Victorians.”

Ms Cleeland said extraordinary demand combined with international supply disruptions had effectively drained the spot market, leaving independent retailers who rely on uncontracted supply struggling to source fuel.

“In the days following the escalation of conflict in the Middle East, demand for diesel and petrol surged across regional Australia as farmers, transport operators and businesses rushed to secure supply,” she said.

“That surge has drained the spare supply that normally circulates through the market.”

Ms Cleeland said the situation was already being felt on the ground, with some independent fuel stations in regional Victoria reporting they had run out of fuel.

“Suppliers are now moving to allocation systems that prioritise customers with long-term supply contracts,” she said.

“That means independent retailers and regional communities are finding themselves at the back of the queue, which has serious implications for our agricultural sector.”

Ms Cleeland said the impacts were already being felt across regional economies.

“Trades, transport businesses and machinery operators all rely on reliable fuel supply to keep working,” she said.

“When fuel becomes harder to access, it disrupts everything from farming operations to freight, construction and small business.”

Ms Cleeland said Australia relied heavily on refined fuel imported from refineries in countries such as Korea, Japan, China and India, many of which depend on crude oil supply from the Middle East.

“With shipping routes disrupted and pressure building on refineries overseas, the entire global supply chain is under strain.”

“This is not a simple retail pricing issue that can be solved with an app or a daily price cap.”

Ms Cleeland said the Allan Labor Government must urgently engage with industry to ensure regional Victoria does not face fuel shortages.

“When governments fail to act early on supply issues, the pressure flows straight through to families, farmers and small businesses already battling rising costs,” she said.

“If independent retailers cannot access supply, price caps won’t matter. The pumps will simply run dry.”

Ms Cleeland encouraged businesses and residents experiencing supply issues to contact her office so the scale of the problem could be raised with government and industry.