Tasmania Gives Itself Power to Cap Soaring Fuel Prices

Tasmanians paying nearly $3 per liter for fuel just got some much-needed relief on the horizon.

The state government introduced legislation this week that gives it power to temporarily cap fuel prices during emergencies and price spikes. The move comes as fuel costs have surged across Australia due to conflict in Iran, leaving many families struggling to fill their tanks.

Right now, unleaded 91 fuel averages $2.51 per liter across Tasmania. Some stations are charging as high as $2.87 per liter.

Premier Jeremy Rockliff assured residents that fuel supply remains secure, with sufficient stock on the island and more shipments arriving. He urged people not to stockpile, which only increases pressure on the system.

The new emergency fuel laws do more than just address prices. They require fuel companies to report their supply levels regularly and introduce penalties for companies that fail to comply. This gives the government access to critical information quickly during disruptions.

The legislation also extends how long restriction periods can last during emergencies. Rockliff says these stronger tools will keep fuel companies accountable and protect consumers during supply risks.

The government has asked the Australian Competition and Consumer Commission to closely monitor the fuel market for price gouging or anti-competitive behavior. They're also encouraging Tasmanians to use the FuelCheck Tasmania app to find the cheapest prices nearby.

The Bright Side

While fuel prices remain high, Tasmania is taking concrete action to protect its residents from exploitation. The transparency requirements mean companies can't hide supply information, and the price cap power gives the government a real tool to step in when costs spiral out of control.

The state is also pushing the federal government to cut or eliminate the fuel excise, which adds 51 cents to every liter. That tax was halved in 2022 during another cost of living crisis, and Tasmania argues it should be cut completely while the current situation remains volatile.

The bill is expected to be debated in parliament's lower house, with bipartisan recognition that families need protection from unreasonable price spikes.

Tasmania is showing that governments can respond quickly when people need help most.