Australia is as "prepared as it possibly can be" for potential fuel shortages, the government has said, as the war in the Middle East disrupts global supply chains, farmers in rural regions face fuel shortages, and the petrol price per litre explodes.
At a press conference on Saturday, Energy Minister Chris Bowen said Australia's fuel supply remained secure, with shipments continuing to arrive as planned.
Bowen told reporters he was "pleased" to announce there was now 1.6 billion litres of petrol in Australia's fuel stocks, amounting to a 37-day supply, up from 36 last week.
Australia has 2.7 billion litres of diesel, 30 days worth, and 800 million litres of jet fuel, good for 29 days.
Bowen said he would continue to give weekly, rather than quarterly, updates on Australia's fuel stocks. He said the situation was "complex" but urged calm.
"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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