NT Government Targets Fuel Price Gouging with 1940s Law

The Northern Territory government has invoked a piece of legislation dating back to 1949, the Price Exploitation Prevention Act, in an unprecedented move to tackle the ongoing fuel crisis and prevent motorists from being overcharged. This marks the first time the 77-year-old Act has been brought into effect since its inception.

NT Treasurer Bill Yan explained that the legislation grants the government significant powers, including the ability to demand detailed financial information from fuel retailers to scrutinise their pricing structures. In “the most extreme cases,” the government could potentially intervene and directly set the prices of petrol and diesel at the pump.

Unprecedented Powers to Ensure Fair Pricing

The Price Exploitation Prevention Act empowers the NT government to:

• Request comprehensive data: Retailers can be compelled to provide an open-ended amount of information regarding their full cost structure, including margins derived from retail fuel sales and the methodology behind their pricing.
• Prohibit transactions: In situations where price exploitation is suspected, the government has the authority to halt transactions.
• Intervene and set prices: If evidence of price gouging is found, the government can step in and override existing prices, setting their own for petrol and diesel.

“These are extreme powers which give us the ability to intervene and over-rule, which we genuinely hope we don’t have to use because retailers will do the right thing,” Mr. Yan stated. “This is about market transparency and having the power to hold these companies and retailers to account.”

Failure to comply with the Act’s provisions could result in severe penalties for retailers, including fines of up to $74,000 and potential prison sentences of up to two years.

This decisive action by the NT government comes just 20 days after the NT Labor opposition publicly called for the Price Exploitation Prevention Act to be triggered, a move the government had previously indicated was not feasible.

National Measures and Local Impact

The federal government has also implemented measures to alleviate the fuel cost burden. Prime Minister Anthony Albanese recently announced a temporary halving of the national fuel excise for three months, aiming to reduce petrol and diesel prices by 26.3 cents per litre. Additionally, the heavy vehicle road user charge has been reduced to zero for the same period, providing relief to truck drivers grappling with global fuel price shocks, exacerbated by international conflicts.

The Northern Territory, like many regional areas across Australia, has been disproportionately affected by the global fuel crisis. Its vast geography and limited public transport options mean a heavy reliance on private vehicles for daily transport. Furthermore, key industries in the NT, such as fishing, mining, and agriculture, are inherently fuel-dependent, making them particularly vulnerable to price fluctuations.

Government Expectations for Retailers and the Public

Treasurer Bill Yan has formally communicated with NT fuel retailers, outlining the government’s clear expectation that the reductions in fuel prices resulting from the Commonwealth’s excise cut must be fully passed on to consumers.

He also reassured the public that there have been no disruptions to the supply of fuel into the NT. Deliveries are continuing to arrive with the necessary quantity and frequency.

“People don’t need to stockpile or hoard fuel,” Mr. Yan urged. “We have enough for everyone. We’re asking everyone — the fuel suppliers, business, and the community — to just keep purchasing based on your ordinary needs.”

In addition to urging responsible purchasing habits, the treasurer appealed to the public to treat fuel station staff with respect during this challenging period.

Support from Automotive Associations

The Automobile Association of the NT (AANT) has voiced its support for the government’s decision to activate the Price Exploitation Prevention Act. Senior manager Ben Haysthorpe commented, “Anything that the government can do to help make fuel retailers be more accountable is a good thing, and hopefully that will help drive down the fuel prices.”

Mr. Haysthorpe added, “People are hurting and people want fuel retailers to be held accountable for these high prices.”

The NT has seen some of the highest fuel prices in Australia, particularly in its remote and regional areas. In Alice Springs, diesel prices have been recorded at approximately $3.35 per litre, with surrounding communities experiencing even higher costs. Along the Stuart Highway, heading towards the South Australian border, diesel has been observed selling for as much as $3.99 per litre.

The AANT expressed hope that the revived legislation will foster greater transparency in fuel pricing. “We can look at what they’re charging us at the bowser, but we can also check to see what they’re paying at the terminal gate,” Mr. Haysthorpe explained. “And at the moment there’s some big gaps that are appearing. Gouging is a strong word – I would say we’re being charged some questionable prices.” The renewed scrutiny under the Price Exploitation Prevention Act is anticipated to address these concerns and ensure fairer pricing for Territorians.