The federal treasurer, Jim Chalmers, has asked the competition watchdog to crack down hard on any price gouging when the petrol excise cut expires at the end of September.
The letter to the Australian Competition and Consumer Commission, released on Monday, confirms the government’s intention to reintroduce “the full excise” on 29 September. It was halved for six months in the March budget.
The government has also revealed that 4.7 million Australians will see an increase in support payments from 20 September due to regular indexation. Payments including the pension and jobseeker will rise by 4% in line with the consumer price index in the six months to June.
Parliament resumes for the final sitting fortnight before the October budget on Monday with cost of living top of mind. The Reserve Bank on Tuesday will probably further lift the official interest rate.
With petrol prices soaring due to the Russian invasion of Ukraine, drivers were given some relief at the pumps in March when the Morrison government halved excise to 22.1 cents a litre at a cost of $3bn to the budget. The Albanese government repeatedly warned it was unlikely to extend the measure.
On 18 August, Chalmers wrote to the ACCC seeking help to ensure petrol companies “do not take advantage of the expiry of the fuel excise reduction to penalise consumers”.
Chalmers noted the ACCC’s role in monitoring prices, costs and profits, directing it to “intensify these efforts in the period preceding and after 29 September”.
The watchdog should “investigate any concerns arising about misrepresentations regarding petrol prices, false and misleading conduct or anti-competitive conduct in fuel markets, and to take appropriate action”, the treasurer said.
“I expect that the ACCC will engage with major retailers and wholesalers to ensure that they do not mislead Australian consumers about the rationale for any price rises.”
In a statement on Monday, Chalmers said “refiners, importers, wholesalers and retailers should consider themselves on notice – the ACCC is keeping a very close eye on fuel prices across the country to make sure any increases are justifiable”.
“There should be no doubt that if there is evidence of misleading or anti-competitive conduct by fuel retailers, the ACCC will take action.”
With inflation tipped to reach 7.75% by the year’s end, the RBA is expected to lift the official cash rate by a further 40 or 50 basis points on Tuesday to as high as 2.35%.
The increase would be the fifth consecutive rise after the bank began hiking the cash rate in May from the 0.1% emergency level set in November 2020.
Social security payments will rise by 4%, pushing the age pension, disability support pension and carer payment up by $38.90 a fortnight for singles and $58.80 for couples.
The maximum rate of the pension will increase to $1,026.50 a fortnight for singles and $773.80 for each member of a pensioner couple or $1,547.60 per couple, including the pension and energy supplements.
Jobseeker, parenting payments, Abstudy and rent assistance will also increase.
The rate of jobseeker for singles without children will increase by $25.70 a fortnight to a maximum of $677.20 while parenting payments for singles will increase by $35.20 per fortnight to $927.40.
The federal minister for social services, Amanda Rishworth, said the indexation increase – which is tied to the consumer price index – was the largest in more than 30 years for allowances and 12 years for pensions.
“We want to ensure Australia has a strong social security safety net to protect our most disadvantaged,” Rishworth said. “Our guiding principles as a government are ensuring no one is left behind and no one is held back and this indexation increase will help those on government payments keep up with the cost of living.”
Despite calls at the jobs summit to raise jobseeker from groups including the Australian Council of Social Services, the Albanese government has said it will not do so in the October budget.
