Navigating the ever-fluctuating petrol prices could be a source of frustration, especially if you are managing fixed incomes and looking for ways to stretch your dollars further. However, a new government initiative in Victoria could offer some much-needed relief and predictability when it comes to fuel costs.
Under the proposed Fair Fuel Plan by The Allan government, petrol prices would be frozen for a full 24 hours at a time, giving motorists the chance to plan their refuelling around the best available rates. This bold move is aimed squarely at easing the cost-of-living pressures that have been steadily mounting for consumers.
‘Those fuel price fluctuations really are frustrating for motorists … finding the lowest price and holding it, we do know that can save hundreds of dollars a year for Victorian motorists,’ said Premier Jacinta Allan.
The proposed plan would require petrol stations and retailers to report their fuel price changes the day before they take effect, ensuring that prices at the pump remain constant for the entire day.
In addition to the daily price freeze, the initiative includes the development of a petrol price tracking app. This app would gather all the daily price changes and make them easily accessible through the Services Victoria app, providing a convenient tool for consumers to find the most affordable fuel in their area.
The rollout of this plan is set to occur in two phases, with the first phase focusing on the app’s development and the second phase involving the implementation of legislation to cap petrol prices.
‘We will do the consultation with industry around the legislation and bring the legislation into parliament probably in the later part of this autumn session that is coming up,’ Allan added.
While the specifics of the penalties for non-compliance have not been disclosed, the Premier emphasised that the goal is ‘not about punishing retailers [but] about helping motorists’ manage their fuel expenses.
This approach to fuel pricing is not entirely new. Western Australia has a similar scheme in place with FuelWatch, which provides next-day fuel prices from 2:30 pm each afternoon.
However, Victoria’s proposal is reportedly unique in that it allows for price reductions during the day, whereas Western Australia’s plan does not permit any price changes once set.
Economists like David Byrne from the University of Melbourne see transparency in pricing as a positive step for consumers. However, Byrne cautioned that the policy could lead to a gradual increase in petrol prices over time, a trend that should be monitored by the Australian Competition and Consumer Commission (ACCC).
‘The worry might be is [companies] may start to announce a high price tomorrow, and maybe the next day [they] all try another higher price, and then an even higher price. Based on the research I have done, and various others, that would be the thing to be really looking for with a policy like this,’ he explained.
The Australasian Convenience and Petroleum Marketers Association (ACAPMA) also expressed concerns about the potential impact of the fuel plan on the competitive dynamics of the market, particularly in metropolitan Melbourne.
‘This is a market intervention that we have not seen in this country. Our specific concern is to make sure that while it would increase transparency, it does not damage the competitive dynamic…’ expressed ACAPMA chief executive Mark McKenzie.
‘The government is really going to have to tread carefully in advancing this particular measure.’
Despite these concerns, consumer advocacy groups such as the National Roads and Motorists’ Association (NRMA) welcomed the announcement, saying it would empower families to make informed decisions and potentially save money when filling up their vehicles.
‘Families will no longer have to guess where to fill up as they will be able to access the price of every service station in real-time — this will deliver equal benefit to families in Melbourne and regional Victoria,’ said NRMA spokesperson Peter Khoury.
The Royal Automobile Club of Victoria (RACV) has also expressed support for measures that reduce fuel costs but is awaiting further details from the government, saying, ‘RACV supports any measure that brings down the cost of fuel and provides Victorian motorists with savings at the fuel pump.’
For years, Victorian motorists have relied on privately owned price trackers like Petrol Spy, managed by Andrey Firsov, to navigate fuel prices. Firsov’s platform, which sees about 50,000 visitors from Victoria daily, charts the price cycles of fuel, which typically peak roughly once a month rather than multiple times a day.
While Firsov is uncertain if daily price locks will lower petrol prices, he acknowledges that price reporting schemes enhance transparency, which is ‘good for the consumer.’
Our YourLifeChoices readers, what are your thoughts on this fuel plan? Have you found other effective strategies for saving on petrol? Let us discuss and help each other navigate these cost-of-living challenges together.
Also read: How petrol price cycles have changed
