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Australia is reportedly as well-prepared as possible for potential disruptions in fuel availability, according to governmental assurances. This statement comes amid the ongoing conflict in the Middle East, which is affecting international supply chains, causing shortages for rural farmers, and leading to increased fuel prices.
During a press briefing on Saturday, Energy Minister Chris Bowen reassured the public that Australia’s fuel supplies remain stable, with scheduled shipments arriving without interruption.
Bowen expressed satisfaction as he revealed that the country currently maintains 1.6 billion liters of petrol in reserve, equating to a 37-day supply, a slight increase from 36 days the previous week.
Additionally, the nation holds 2.7 billion liters of diesel, sufficient for 30 days, and 800 million liters of jet fuel, covering a 29-day period.
Bowen committed to providing weekly updates on fuel reserves, rather than the usual quarterly reports, to keep the public informed. He acknowledged the complexity of the situation but called for public composure.
“I understand very much that Australians have received different reports over the last week about whether we are running short of fuel or not. And the situation is a little complex, in that we have received all our expected shipping of petrol and diesel, that our refineries continue to work, and indeed, the supply of petrol has been secure, and has been just as expected.”
But there were “real and unacceptable” shortages in rural and regional areas burdened under an “explosion” in demand.
Is Australia running out of fuel?
Opposition energy minister Dan Tehan accused Bowen of being “caught asleep at the wheel”, and insisted Australians needed to know if they were facing a fuel shortage.
But Bowen insisted the “current situation” had not impacted Australia’s supply of fuel, but rather the demand for it.
The government has maintained that perceived fuel shortages in rural and regional areas are a result of panic buying.
Farmers rely on diesel year-round to maintain equipment and continue production, and producers who spoke with SBS News this week said it was difficult to reconcile the government’s assurances with what they were seeing on the ground — fuel sold out for kilometres around.
As the war in the Middle East enters its third week, the Albanese government has introduced a series of initiatives to prevent fuel prices from spiking, including temporarily wiping the fuel standard, to permit so-called “dirty fuel” — usually exported to countries with lower fuel standards — to be used in the domestic market.
The fuel standards will remain in place for 60 days, but could continue if necessary.
In addition, up to 762 million litres of petrol and diesel will be released from domestic reserves to help boost Australia’s stock.
“It won’t flow immediately,” Bowen said, and added that Australia has a “very complicated supply chain”.
NSW will hold a fuel security roundtable on Monday, bringing together industry leaders and key sectors, including mining, unions and transport, to discuss supply impacts and support for businesses and community.
The consumer watchdog this week welcomed the government’s penalty increase for breaches by fuel companies from $50 to $100 million, amid reported concern around sudden price spikes for petrol at the outset of the war in the Middle East.
“We know the impact that higher prices are having on Australian consumers. We have been watching pricing behaviour closely since the outbreak of recent hostilities in the Middle East and will take action against any case of misleading consumers about the reason for the steep and rapid increase in prices by individual retailers or any breaches of the competition provisions,” ACCC Commissioner Anna Brakey said in a statement.
“We are closely watching market behaviour and if there is conduct that is collusive or misleading or deceptive, we will investigate it and take action where appropriate.”
When pressed to answer whether he anticipated a fuel shortage, Bowen said there wasn’t any way to know.
“Anyone who pretends they know exactly how this will play out over the next couple of weeks, isn’t being fair dinkum. It is a very uncertain environment, and a very uncertain setting. What we can do is maximise Australia’s resilience as we deal with this uncertain environment.”
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