AUSTRALIA MOVES TO DOUBLE FINES FOR FUEL GOUGING AMID SHORTAGES

SYDNEY, March 25 (Reuters) -- Australia's centre-left government on Wednesday introduced legislation in the parliament to double penalties for fuel price gouging as global supply disruptions due to the Iran war triggered fuel shortages in some rural regions, Reuters reported.

Australia last year imported 84 per cent of its petroleum product demand, government statistics show, leaving it exposed to global shocks. Supply fears have stoked panic buying, doubling demand for fuel in some areas, despite assurances from the government that the market is well supplied.

Treasurer Jim Chalmers said the proposed Treasury Laws Amendment Bill 2026 would impose fines of up to A$100 million (US$70 million) for false or misleading conduct and cartel behaviour.

Companies must not use the conflict overseas as an excuse to raise prices, he said, urging opposition lawmakers to back the bill.

"We're not immune from uncertainty and volatility in the global economy, but this action is all about protecting consumers and holding petrol suppliers and retailers to account," Chalmers said.

According to Reuters, the legislation follows an investigation by Australia's competition regulator last week into alleged anti-competitive conduct by major fuel suppliers, including Ampol ALD.AX, BP BP.L, Mobil Oil Australia XOM.N and Viva Energy VEA.AX, which operates Shell and Liberty fuel stations.

More than 100 service stations across Victoria state ran out of petrol on Tuesday, ABC News reported, citing the state's energy minister.

In New South Wales, Australia's most populous state, 165 stations were without diesel on Tuesday and 298 lacked at least one type of gasoline, The Sydney Morning Herald newspaper said.

The Labor government has said it would release petrol and diesel from domestic reserves and temporarily loosen petrol and diesel quality standards to increase supply.

(US$1 = 1.4302 Australian dollars)

-- REUTERS