FEDERAL MP for Page Kevin Hogan is demanding a Royal Commission to investigate alleged price gouging by Australia's supermarkets and in petrol retailing.

Mr Hogan has announced he will move a a Notice a Motion in Parliament next week calling for a Royal Commission with terms of reference that cover the two areas.

"I hear enough stories from our farmers and processors that warrant a Royal Commission into our major supermarkets," Mr Hogan said.

"The allegations of misuse of market power, unconscionable conduct and the use of unfair contract terms must be investigated by a Royal Commission."

"The larger supermarket chains - Woolworths, Coles, ALDI - control more than 76 per cent of the industry.

"With petrol retailing, I am sick of regional and country retail petrol prices being higher than city prices.

"It is not unusual for there to be a 20-30 cent per litre differential.

"This is not explainable by transport costs or any other cost input.

"With very little public transport options in the country and the longer distances travelled, it is a huge impost on country people.

"I have questioned the ACCC and others on this and have never had a reasonable explanation," he said.

"This needs to be investigated by a Royal Commission to see if alleged price gouging is occurring."