Tasmanians are paying 35% more for petrol and nearly 50% more for diesel than just weeks ago, following the closure of the Strait of Hormuz.
Petrol prices have risen from $1.75 to $2.36 a litre, while diesel has climbed from $1.86 to $2.73 and is approaching $3.
The increases were revealed during a parliamentary committee hearing, where the state’s energy planning director, Sean Terry, warned the fuel system was “becoming more constrained, more expensive and increasingly reliant on active coordination”.
The disruption stems from conflict involving the United States, Israel and Iran, which has effectively shut the Strait of Hormuz – a key shipping route carrying about 20% of the world’s oil supply.
Australia imports up to 90% of its refined fuels from Asian refineries that rely heavily on Middle Eastern crude transported through the strait, Terry told the committee.
He said Tasmania was not facing an immediate fuel shortage.
The state’s five fuel terminals hold about 63 megalitres of petrol – equivalent to roughly 57 days’ supply under normal consumption – although some panic buying has been observed.
Deputy Premier Guy Barnett said the government had written to the ACCC, urging “extra vigilance on price gouging and anti-competitive behaviour” and to the federal treasurer seeking stronger penalties.
Shadow finance minister Luke Edmunds said the response did not go far enough.
“Tasmanians are battling against immense cost-of-living pressures – they deserve a government that has their back and takes action, not one that writes letters and crosses its fingers that nothing bad will happen,” he said.
Edmunds pointed to Victoria, where authorities have deployed investigators and inspectors to ensure service stations are complying with pricing rules.
Asked whether similar field inspections had been conducted in Tasmania, Barnett said he would need to seek advice and report back.
He was also unable to confirm whether prices listed on the ‘FuelCheck TAS’ app were accurate.
Consumers have been encouraged to report concerns about price gouging via a hotline, although Edmunds noted it operates only during business hours.
Terry said Tasmania was currently at “level two” under its liquid fuel emergency response plan, with “contingency planning” underway for possible restrictions if conditions worsen.
