Australia’s supplies of petrol and fuel are secure, says the Federal Government. Photo: Michelle Kroll.
There’s no need to panic-buy fuel, says the Federal Government, as Australians are already paying sharply higher prices at the bowser due to the Iran war.
Global oil prices spiked over the weekend as shipments became disrupted in the Middle East’s Strait of Hormuz oil tanker waterway.
Most ocean carriers have suspended transit through the trade route and some Australian fuel wholesalers have begun rationing fuel supplies as a result.
Australian motorists are feeling pain at the petrol pump, with petrol prices jumping from about 176.9 cents a litre to as high as 219 cents a litre and rising.
Diesel prices are even higher, with some parts of the country already seeing it reach 242 cents a litre.
In the ACT and New South Wales, the average price on Tuesday for E10 petrol was about 213 cents a litre, but there was a wide price differentiation across suburbs.
Diesel was as high as 226 cents a litre.
Energy Minister Chris Bowen has called for calm, saying Australia’s fuel supplies are secure.
“I can say that our diesel and petrol supplies remain at this point secure,” Mr Bowen said on Tuesday (10 March).
“We have as much diesel in Australia today as we had before this crisis began, and the stock obligation, which the companies are legally required to meet, remains at 32 days.
“We are seeing a big increase in demand, particularly for diesel, and I understand why Australians are concerned, but my key message is that every single expected arrival of diesel supply in recent days and expected incoming days and weeks has arrived on schedule as expected.
“So there is no need for panic buying.”
The Minister said he had a “great deal of concern and empathy” for farmers in particular who, because of the situation with the supply chain in regional Australia, are having difficulty getting diesel.
But he emphasised that the current issue is about managing a huge spike in demand, not an impact on supply.
“The key message is, while there are challenges and uncertainties in all international supply chains at the moment, the preparations that the government has put in place for the minimum stock obligation are working,” he said.
“If it’s necessary to access those minimum supplies, we will, but we’re not there at this point.
“And the important thing to know is that there is no need to be concerned at this point about the supply of diesel or petrol in Australia, because our stocks are as high as they were before this crisis began.”
Opposition Leader Angus Taylor said rising fuel prices in the current economic climate were not a good sign for Australians who are already struggling with their household bills.
“There is a heightened level of anxiety out there among Australians who were already feeling the pressure of rising cost of living, then a shock comes along,” Mr Taylor said.
“The fact that we were already facing rising inflation makes that shock even worse.”
Nationals’ Senate leader Bridget McKenzie said Australians were getting “slugged at the bowser” and the Federal Government needed to do more to protect them.
She also said the government should be doing more to protect regional supply chains.
“This has huge implications for Australian industry and Australian households,” Senator McKenzie said.
“You can’t fix a problem if you don’t admit there is one. And last week, we saw senior Cabinet ministers telling us that prices were holding steady.”
The Australian Competition and Consumer Commission said it is carefully monitoring the Australian fuel market.
Original Article published by Chris Johnson on Region Canberra.
