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In brief
- The government has announced a new fuel taskforce to ensure fuel is distributed across the nation.
- The consumer watchdog will investigate fuel suppliers including Ampol, BP, Mobil Oil and Viva Energy.
In a decisive move to ensure the nation’s fuel supply remains uninterrupted, Prime Minister Anthony Albanese has announced the formation of a specialized taskforce. This development comes amid ongoing investigations by the consumer watchdog into potential anti-competitive practices by fuel suppliers.
The National Cabinet, meeting virtually on Thursday morning, saw the prime minister and leaders from states and territories gather to address concerns regarding fuel shortages and price volatility. These issues have been exacerbated by the ongoing conflict in the Middle East, significantly impacting global fuel dynamics.
Since the conflict erupted in late February, following military actions by the United States and Israel against Iran, fuel prices have surged. This has prompted reports of Australians resorting to stockpiling, driven by fears of escalating shortages.
Facing pressure to alleviate public concerns, Prime Minister Albanese has introduced the taskforce as a proactive measure. “Our fuel supply is currently secure. However, I want us to be over-prepared,” he asserted on Thursday, emphasizing a commitment to maintaining stability in the fuel supply.
“Our fuel supply is currently secure. However, I want us to be over-prepared,” Albanese said on Thursday.
Albanese announced the new taskforce will be led by Anthea Harris.
Harris has extensive knowledge in the area, given her previous roles as CEO of the Australian Energy Regulator and the former chief executive officer of the Energy Security Board.
She will be responsible for leading the taskforce, driving coordination between states and the Commonwealth governments and providing updates on fuel supply outlook.
The federal government and motoring groups have been urging Australians not to panic-buy fuel.
Albanese reiterated on Thursday: “Please do not take more fuel than you need. That is how you can help.”
He said “every single ship” carrying oil products “that was due to land here has landed here”.
“There is not less supply,” Albanese said. “This has been an issue of increased demand.”
Albanese said more measures to prepare for supply chain challenges could be anticipated in the coming days and weeks.
It follows an announcement last week that 20 per cent of Australia’s stock of diesel and petrol reserves would be released to meet localised shortages, particularly in regional areas.
The government’s release of emergency reserves, following the International Energy Agency’s recent request, equates to roughly six days of petrol and five days of diesel.
Energy Minister Chris Bowen has also temporarily relaxed the nation’s fuel standards to higher sulphur levels, resulting in an additional 100 million litres per month for domestic consumers, as it’s blended with other fuels.
ACCC launches investigation
On Thursday, the Australian Competition and Consumer Commission (ACCC) said it had launched a probe into petrol and diesel prices after rises that outstripped international increases.
The consumer watchdog will investigate allegations of price gouging by major fuel suppliers Ampol, BP, Mobil Oil and Viva Energy.
ACCC vhair Gina Cass-Gottlieb revealed this will include assessing reports of misconduct by regional and rural fuel suppliers.
“It is not our usual practice to publicly announce investigations, but given the significance of the issue, the ACCC is confirming this enforcement investigation,” she said in a statement on Thursday.
“We recognise the widespread concerns held by consumers, businesses and farmers about fuel pricing and supply issues arising during the Middle Eastern conflict.”
The consumer watchdog’s investigation was at a “preliminary stage”, Cass-Gottlieb said, and it was “yet to form a view about these matters”.
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