Fuel companies must ease price hike: PM

Scott Morrison has demanded the petrol sector act in the best interests of consumers in the face of soaring prices.

While his government continues to wave a "big stick" at energy providers, the prime minister has also put the fuel industry on notice as prices continue to climb.

"It's in the hands of the fuel companies to do the right thing by their customers and the ACCC and I will be watching very, very carefully," Mr Morrison told reporters in Canberra on Tuesday.