International crude oil prices are rising sharply due to Middle East conflict. The ACCC is watching fuel retailers closely and has a message for small businesses on managing costs.
What’s happening: The ACCC is actively monitoring petrol price movements and has written to major fuel companies following a sharp rise in international crude oil prices tied to the Middle East conflict.
Why this matters: For small businesses managing fleets, logistics, delivery costs or simply keeping an eye on overheads, fuel is a direct input cost. What happens at the bowser in coming weeks will be shaped by both global events and how closely Australian retailers are being watched.
Australian small businesses reliant on fuel should keep a close eye on prices in the coming weeks, with the ACCC confirming it has written to major fuel companies following a sharp increase in international crude oil prices driven by the Middle East conflict.
ACCC Commissioner Anna Brakey said the regulator is actively examining both international and domestic fuel price movements and market behaviour as the situation unfolds.
“The international price of refined petrol is a key driver of Australian retail petrol prices. While these international costs are largely outside the control of local petrol retailers, we remind retailers that making false or misleading statements to consumers about the reasons of price increases would be in breach of the Australian Consumer Law,” Brakey said.
She added that the regulator has already been in direct contact with the industry. “The ACCC will not hesitate to take action if representations and market behaviour by a petrol company contravene competition and consumer laws. We have written to major fuel companies to set out our expectations about domestic fuel pricing as these international events unfold.”
The warning carries weight. In February 2026, the Federal Court ordered Mobil Oil Australia to pay $16 million in penalties for making false or misleading representations about the fuel sold at nine petrol stations in Queensland, in breach of the Australian Consumer Law.
Prices on the rise again
The ACCC’s latest quarterly petrol monitoring report, covering the December quarter 2025, found that average retail petrol prices across Australia’s five largest cities were 180.4 cents per litre, up 1.6 cents per litre on the previous quarter. Prices rose in Sydney, Melbourne, Brisbane and Adelaide, while Perth held steady.
Across more than 190 regional locations monitored by the ACCC, average prices were 180.6 cents per litre, marginally higher than the major city average.
For context, Brakey noted the broader annual picture. “While average prices were higher in the largest cities in the December quarter, they were overall lower in calendar year 2025 than in 2024.” Annual average retail petrol prices across the five largest cities in 2025 were 179.3 cents per litre, 8.7 cents per litre lower than in 2024.
The more immediate concern is what has happened since. Over the past week, international crude oil and refined petrol prices have increased sharply, influenced directly by the Middle East conflict.
Margins under the microscope
The ACCC’s report found that higher retail and wholesale costs and margins were the main contributors to the December quarter price increase, rather than the underlying cost of crude oil, which actually trended downward during the quarter as global inventories reached their highest level in nearly four years.
Average gross indicative retail differences, a broad measure of gross retail margins covering both operating costs and profits, were 17.9 cents per litre across the five largest cities in the December quarter, up 1.5 cents per litre on the previous quarter. For the full calendar year 2025, the annual average of 16.3 cents per litre was 0.2 cents per litre above the 10-year real terms average.
It is this margin component that has drawn the ACCC’s attention, and why the regulator’s letter to major fuel companies matters for businesses watching their costs.
For businesses running fleets or relying on freight and logistics, diesel tells a sharper story. Average retail diesel prices across the five largest cities rose to 185.9 cents per litre in the December quarter, up 4.1 cents per litre on the previous quarter. Every capital city recorded an increase.
Annual average retail diesel prices in 2025 were 4.9 cents per litre lower than in 2024, but the quarterly trend and the recent sharp increase in the international benchmark price for refined diesel suggest that relief may be short-lived.
EVs hit a record
One longer-term signal buried in the report may be of interest to small business owners considering their fleet options. Almost 17 per cent of all new vehicle sales in December 2025 were electric vehicles, the highest monthly electric vehicle market share ever recorded in Australia. For the full calendar year 2025, electric vehicle sales rose 38 per cent compared with 2024 and represented just over 13 per cent of all new vehicle sales.
For small businesses exposed to fuel costs, the ACCC’s practical advice in the short term is direct. “At this time, as at any time, we encourage motorists to use fuel price apps and websites to shop around to find the lowest prices,” Brakey said. In a market under active regulatory scrutiny, that comparison shopping has rarely mattered more.
Link to the new direction
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