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Experts indicate that the soaring costs at gas stations are having an impact comparable to three interest rate increases.
Despite concerns about potential shortages of petrol and diesel, the federal government has announced that it currently has no plans to introduce rationing measures.
Economist Chris Richardson shared with 9News that, “Inflation in Australia is likely around 5 percent, if not higher.”
He further explained that the significant rise in fuel prices alone mirrors the effect of approximately three rate hikes.
This situation might not deter the Reserve Bank from raising rates again next month, although Treasurer Jim Chalmers notes it will be a factor to consider.
“Particularly for those Australians who can’t substitute out of petrol or diesel, obviously that has a dampening effect,” he said.
More than 600 service stations around Australia – or one in 12 – are without at least one type of fuel.
Today, Energy Minister Chris Bowen offered some good news with alternative supply found for six cancelled oil tankers.
“In addition to replacing those six cancelled boats, they’ve been able to secure an additional three more cargo deliveries for April and May for Australia, over and above the normal contracted deliveries,” Bowen said.
Pauline Hanson wants Bowen to declare a liquid fuel emergency that would give him the power to direct fuel to where its needed, while limiting fuel for motorists.
“We’re calling for this emergency act to come into place that means there will have to be rationing,” Hanson said.
Prime Minister Anthony Albanese disagreed.
“The states and territories can deliver fuel where it’s needed most, and so the Commonwealth can concentrate on supply,” he said.
An emergency response developed by the previous federal government suggested petrol rationing could be best done by imposing limits on all pumps – not that this is the minister’s plan just yet.
By the minister’s own admission, all ideas are being considered to boost fuel supply, including increasing ethanol content.
But by late April if the Strait of Hormuz is not reopened, more drastic measures will be well and truly on the table.
To properly inform the community as to who has fuel – and who doesn’t – 9News understands state and federal governments are planning a national website that records all retail outages.
NSW Premier Chris Minns today took extraordinary action to make sure the state was getting its fair share, turning a non-descript office in the heart of Sydney’s west into the state government’s war room in the battle for fuel.
Its officially called an emergency operation centre and has public servants tracking the oil companies’ supply of fuel and then take control of oil distribution, directing it where it’s needed most.
“We have those extraordinary powers to re-direct resources, to inform the oil companies about where shortage are today where they’re likely to be tomorrow,” Minns said.
There’s evidence today that some fuel is getting through. Yesterday, 51 service stations were completely dry in NSW, today that number dropped to 32.
But diesel is still running low with 187 servos empty, which is up from 164 yesterday.
There are warnings that the longer the shortages last, the more essential services will be impacted – rubbish collectors becoming the latest to raise the alarm.
“If we cant get the fuel supplies to collect for residences and business we have to make tough decision who gets collected and who don’t,” Brett Lemin from Waste Contractors and Recyclers Association said.
And then there’s spiralling cost of fuel.
Australia Post today joined Uber, which was among the first to react to rising fuel prices.
Its contract customers who rely on StarTrack courier services will see the current fuel surcharge hiked from 4.8 per cent to 12 per cent.
Major retailers will be hit by this and it’s expected they will pass it on to the customer.
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