Energy Minister Says No Fuel Shortage, Urges Australians Not to Panic Buy

Energy Minister Chris Bowen said Australia currently holds more than a month’s worth of reserves, with oil supplies secured through May.

Fuel prices are displayed at a Caltex service station in Perth, Western Australia, on March 16, 2024. Susan Mortimer/The Epoch Times

Energy Minister Chris Bowen has moved to calm fears over fuel security, assuring Australians there is no immediate risk to petrol supplies and warning motorists not to panic buy.

Speaking at a press conference on March 3, Bowen said all of Australia’s strategic fuel reserves are now held either on the mainland or within the country’s exclusive economic zone—no longer stored overseas.

“There is no need to rush to the service station and fill up. I do understand people’s concerns, but it’s important that people know we do have a good stock of petrol in reserve.”

He also sought to calm fears about a sudden spike in prices, saying energy and refining companies had told him they do not intend to increase petrol prices unless higher global oil costs are passed on to Australia.

“In Australia, there is no immediate threat to petrol supplies in Australia. There will be challenges in this difficult environment in the Middle East. The Strait of Hormuz is a very important supply chain for the world,” Bowen said.

The government introduced a minimum stockholding obligation in 2023, requiring refineries and fuel companies to keep specified volumes of fuel onshore.

“And I’m pleased to say that we are currently in excess of the minimum stock obligations–36 days’ worth of petrol, 34 days’ worth of diesel, and 32 days’ worth of jet fuel on hand as we speak.”

Bowen stressed those figures refer only to reserve holdings and do not include fuel already in service station tanks or in vehicles.

The minister also stated he had spoken with chief executives of major refining companies and was confident supplies were secure in the short term.

“They’ve informed me that they have confidence in the oil supplies through to May—that they have contracts in place which they fully expect to be honoured and delivered, and that should see Australia’s energy security in very good circumstances over the coming weeks and months,” he said.

ACCC Asked to Watch Prices

Treasurer Jim Chalmers has written to the Australian Competition and Consumer Commission (ACCC), asking it to closely monitor petrol prices amid unrest in the Middle East.

Iranian retaliatory strikes have disrupted production in parts of the region, pushing up global oil prices.

In his letter to the acting ACCC chair, Chalmers urged vigilance against price gouging.

“I would expect the ACCC as the independent regulator enforcing Australia’s competition and consumer laws to investigate any concerns arising about misrepresentations regarding petrol prices, false and misleading conduct or anti-competitive conduct in petrol markets, and to take appropriate action,” the letter read.

The Albanese government said it would continue working with regulators to ensure consumers are not unfairly hit by speculative price rises.

Union Warns of Long-Term Risks

The Maritime Union of Australia (MUA) has called for stronger long-term action to safeguard Australia’s fuel security.

The union urged the federal government to rebuild sovereign fuel storage capacity onshore and expand domestic refining capability to reduce reliance on imported finished fuels.

It warned that a major global supply shock could stall the economy if imports were disrupted.

“The closure of the Strait of Hormuz during the recent attacks on Iran is a stark warning of the volatility of Australia’s access to global fuel supply chains,” said the MUA’s National Secretary Jake Field.

“We mustn’t gamble our economic stability on uninterrupted access to foreign fuel markets. We cannot assume that geopolitical tensions will always resolve before our reserves run dry.”