THE Victorian Automotive Chamber of Commerce (VACC), representing fuel retailers across Victoria, has called for comprehensive industry consultation and careful consideration of potential market impacts ahead of proposed government changes to the fuel price system.

The VACC, in response to the Victorian Government’s announcement of a ‘Fair Fuel Plan’, said it was very concerned about the lack of industry consultation before introducing this significant market intervention which it said “may fundamentally change how fuel prices are set across the state.”VACC CEO Geoff Gwilym said: “Our members, who operate service stations in metropolitan and regional communities across Victoria, provide a valuable service to the community.”“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.”

The VACC emphasised that fuel pricing was complex, influenced by multiple factors including international oil prices, exchange rates, and local market conditions. 

Mr Gwilym said any intervention in this delicate ecosystem requires careful consideration and thorough consultation with industry stakeholders.

“The proposed regulations, while well-intentioned, could have significant operational impacts on small business operators,” he said.

Geoff Gwilym

“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.”