The Victorian Automotive Chamber of Commerce (VACC) says it is “deeply concerned” about a lack of industry consultation that went into the state government’s call yesterday to introduce new fuel price measures.
Yesterday, the Victorian government unveiled its Fair Fuel Plan that requires all fuel providers to report on their fuel prices and freeze them for the following 24 hours after in a bid to curb unexpected price rises.
While the VACC acknowledged the government’s efforts to address cost of living pressures faced by motorists and heavy vehicle operators, it says it is worried about the lack of industry consultation that preceded the measures.
“Our members, who operate service stations in metropolitan and regional communities across Victoria, providing a valuable service to the community,” VACC CEO Geoff Gwilym says.
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“VACC appreciates the cost of living pressures experienced by Victorians. 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.”
Gwilym says fuel pricing is complex and influenced by many factors, including international oil prices, exchange rates and local market conditions. He says any intervention in this “delicate” system requires careful consideration and consultation with stakeholders.
“The proposed regulations, while well-intentioned, could have significant operational impacts on small business operators,” he says.
“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.
“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.”
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