Small petrol stations urge Albanese government to crack down on fuel wholesalers as operators run dry

Businesses ranging from vegetable growers to miners warn of disruption from rising petrol prices and lack of supply
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Independent petrol station operators and miners are urging the federal government to crack down harder on major fuel wholesalers hoarding supply and withholding deliveries from smaller operators.

Amid growing disruption from the Iran war , smaller operators are running out of fuel, including in rural and regional areas.

Outlets that buy petrol on the spot market, and do not operate with longstanding contracts for fuel supply, have asked for extra help, including from the government’s new fuel supply tsar.

Paul Andronicou, who runs four Fast Fuel petrol stations in Melbourne’s suburbs, said wholesalers were discriminating against smaller operators.

“Branded company-operated sites are being prioritised for deliveries,” he said.

“Then the branded independent sites come next.

Guys like me, that are our own brand, who are spot buyers, are being locked out.”
Andronicou is turning away customers because he has not had reliable supply of unleaded and diesel since the conflict started on 28 February.

Some suppliers have sent premium unleaded and premium diesel, but those products are less in demand.

“The moment the first missile was fired, this kicked in.

I have only had dribs and drabs, anything people have less.

But I am paying as much as 14c more a litre, when I can get it.”
He called on the government to look at how big players including Ampol, Viva Energy, BP and Mobil were treating independent operators.

Small miners, represented by the Association of Mining and Exploration Companies, have also asked for major wholesalers to ensure fuel supply chains remain functional.

The association warned of “a serious disconnect between these wholesalers and the independent distributors”.

The Australian Competition and Consumer Commission chair, Gina Cass-Gottlieb, last week announced an investigation into alleged anti-competitive behaviour over diesel availability for independent operators, naming major suppliers in a rare statement.

She told Guardian Australia the competition watchdog had already received more than 500 reports about possible price-gouging.

Andronicou said the companies were making significantly increased margins.

“When you see the returns in the next financial year disclosures, we’ll see people doing very well out of this.”
Guardian Australia approached the companies for a response.

Mobil, Viva and Ampol did not respond before deadline.

A spokesperson for BP said the company’s priority was “to ensure it meets its contractual obligations to existing customers.

“Following the government’s approval of a 20% release of BP’s minimum stockholding obligation, we are working closely with governments and our distributors to deliver additional fuel to regions.”
The treasurer, Jim Chalmers , introduced legislation to give the competition watchdog powers to issue increased penalties of up to $100m to fuel refiners found to be price-gouging consumers.

“The war in the Middle East is no excuse to rip people off,” he said.

“Our message to the suppliers and to the retailers is very clear: if you do the right thing by Australian motorists, we will work with you, and if you do the wrong thing by Australian motorists, the ACCC will throw the book at you.”
Separately on Wednesday, vegetable growers said they were reducing planting and opting not to harvest existing crops due to fuel price hikes, and increases in other costs.

More than 75 growers surveyed by industry group AusVeg said they were experiencing critical fuel shortages, with less than 20% having enough diesel to last a week.

Growers said their weekly fuel costs had increased by more than 70%.

The Council of Small Business Organisations Australia chief executive, Skye Cappuccio, said her members were struggling with the high cost of fuel and uncertainty around supply.

“For tradies, delivery operators, farmers and regional retailers, fuel is not discretionary.

It is a daily cost of doing business,” she said.