VACC calls for fuel price regulation talks

Victorian Automotive Chamber of Commerce, which represents fuel retailers across Victoria, says it is “deeply concerned” about a lack of industry consultation by the Victorian Government’s Fair Fuel Plan.

Describing the plan as a “significant market intervention, which may fundamentally change how fuel prices are set across the state,” the chamber is now calling for comprehensive industry consultation and careful consideration of potential market impacts.

“VACC appreciates the cost-of-living pressures experienced by Victorians,” said VACC CEO, Geoff Gwilym. “However, we’re surprised to see such substantial regulatory changes announced without any prior consultation.”

“While the intention to help consumers is admirable, we are concerned that mandating 24-hour price locks could actually remove the natural fuel cycles that often benefit consumers and potentially lead to greater price fluctuations as retailers try to manage their risk. This is particularly concerning for smaller, independent operators who operate on razor-thin margins.”

According to VACC, fuel pricing is complex, influenced by multiple factors including international oil prices, exchange rates, and local market conditions. The chamber believes any intervention in “this delicate ecosystem” requires careful consideration and thorough consultation with industry stakeholders.

“The proposed regulations, while well-intentioned, could have significant operational impacts on small business operators. 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,” said Gwilym.

“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.”