Direction to the Regulatory Authority on the Retail Fuels Price Cap

WHEREAS the Fuels Act 2022 (FA) empowers the Minister under section 7 to issue directions including in respect of interim general determinations made by the Regulatory Authority (the "Authority");

AND WHEREAS the Transitional Fuels Pricing Interim General Determination 2025 (Matter 20231229, 6 February 2025) lapsed on or about 6 August 2025 by its own terms and no successor interim or final general determination is known to the Minister to be presently in force; and the Minister, having regard to that regulatory gap, to the absence of a completed regulatory-impact analysis, and to the protection of public interests, considers that any upward adjustment of retail fuel prices during the transitional period would be premature;

AND WHEREAS the Premier has agreed in principle that the Ministry of Finance shall provide targeted customs-duty relief to licensed importers sufficient to offset any verified revenue shortfall arising from compliance with this Direction, such that the arrangement constitutes reasonable regulation of property with compensation for the purposes of any constitutional or other rights;

NOW THEREFORE, the Minister of Home Affairs, in exercise of the powers conferred by section 7 of the Fuels Act 2022 and all other enabling powers, hereby issues the following Direction:

DIRECTION

1. Citation and Duration

(1) This Direction may be cited as the Retail Fuels (Consumer Protection Standstill) Ministerial Direction 2026.

(2) It takes effect on publication in the Official Gazette and remains in force for six (6) months unless earlier revoked or superseded by a final general determination of the Authority.

2. Moratorium on Upward Retail Fuel Price Adjustments

(1) During the effective period of this Direction, the Authority shall not issue, approve, endorse, adopt, agree, or otherwise give effect to any determination, schedule, arrangement, scheme, decision, or other instrument the effect of which would be to permit any increase in retail fuel prices above the Standstill Ceiling set out in clause 3.

(2) This prohibition applies to any proposal, matter, or decision pending before the Authority at the date of this Direction as well as to any future proposal and applies whether the contemplated mechanism is a general determination under the RAA, an administrative practice, or an arrangement or understanding with licensed importers, wholesalers, or retailers.

(3) Any price schedule, invoice, tariff, or consumer-facing communication purporting to implement an increase above the Standstill Ceiling shall be without lawful basis for the purposes of sections 62 and 66 and Part 6 (enforcement) of the RAA.

(4) The prohibition in this clause is lifted only when, and to the extent that, the Authority has issued the fresh interim general determination under clause 4 incorporating the Standstill Ceiling (clause 3) and the Backstop Arrangement (clause 5).

3. Standstill Ceiling

(1) The maximum retail price of each regulated fuel during the effective period of this Direction shall be the lower of: (a) the unit-cost-based price supported by the Authority's own cost-of-service analysis; or (b) the retail price prevailing immediately (the "Standstill Ceiling"), as set out in Schedule 1.

(2) No licensed importer, wholesaler, or retailer shall charge a retail price exceeding the Standstill Ceiling. Downward adjustments are permitted at any time.

4. Fresh Interim General Determination

(1) The Authority is directed to issue a fresh interim general determination under section 66 of the RAA on an expedited basis, and no later than thirty (30) days from receipt of this Direction, which shall: (a) adopt the Standstill Ceiling in clause 3; (b) replicate the substance of section 9 of the lapsed IGD 2025 (endorsement of arrangement or scheme); and (c) record the Backstop Arrangement in clause 5 as an endorsed scheme.

(2) Within three (3) days of receipt of this Direction, the Authority shall confirm in writing to the Minister, with copies to the Cabinet Secretary and the Attorney-General, the instrument (if any) under which any upward retail fuel price adjustment is said to be given effect on or after the commencement of this Direction.

5. Customs-Duty Relief

(1) The Ministry of Finance shall make available targeted customs-duty relief to licensed importers in an amount calculated to offset any verified revenue shortfall demonstrably attributable to compliance with the Standstill Ceiling.

(2) The Authority shall give effect to this Arrangement as an endorsed scheme within the fresh interim general determination under clause 4, specifying the methodology for quantifying the shortfall, the substantiation and audit process, and the interface with the Finance customs-relief instrument.

(3) Pending issuance of that determination, the Authority and the Ministry of Finance may operate the Arrangement administratively, subject to reconciliation and ratification once formally endorsed.

6. Reporting, Interpretation and Severability

(1) The Authority shall report to the Minister by the end of the third month on compliance, claims paid under the Backstop Arrangement, and progress toward a final pricing methodology.

(2) This Direction is made under and to be read with the RAA. It confers no power by reference to the Fuels Act 2022 (no provision of which is in force) and is without prejudice to the Cost-of-Living Commission Act 1974.

(3) If any provision is held ultra vires or unenforceable, that provision shall be severed and the remainder shall continue in full force and effect.

Sincerely,

The Hon. Alexa Lightbourne, JP, MP 
Minister of Home Affairs

 
SCHEDULE 1

CONSUMER IMPACT COMPARISON

The following table compares the retail fuel prices that would have taken effect on 16 April 2026 under the Authority's proposed monthly adjustment against the Standstill Ceiling fixed by clause 3 of this Direction.