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Prime Minister Anthony Albanese has moved to assure us that our fuel supplies are currently secure, but the government clearly is bracing for a big escalation as the Middle East war erodes certainty.
With the price of crude oil surging, oil and gas infrastructure coming under attack from both Israel and Iran and daily reports of panic buying and shortages in the bush – in NSW, 80 stations have run out of diesel – the rolling crisis prompted Albanese to reiterate his call on people not to buy more fuel than they need.
“Our fuel supply is currently secure. However, I want us to be over-prepared. I understand there are Australians in some parts of our nation who are really worried as they watch what is unfolding in the Middle East, and that is understandable,” Albanese said.
The prime minister said there was “not less” fuel in Australia compared to three weeks ago, and noted that the current issue was one of demand, not supply.
However, Australia imports most of its refined fuel from Asia and the war has caused freight distributors in Singapore, the world’s top bunkering hub, to cut back their purchases after being hit by 50 per cent fuel surcharges and vaulting insurance premiums. Doubts must now hang over how long Australia can rely on its traditional supplier should the war drag on.
We have been here before. Petrol was rationed during the Second World War. Two oil crises in 1979, when strikes and then the Iranian revolution blocked supply, saw panic buying and shortages. State governments introduced measures to manage demand, including a system where petrol could only be bought on specific days depending on whether the car’s number plate was odd or even.
The COVID-19 crisis proved the benefit of a national and co-ordinated response, and Thursday’s national cabinet meeting in Hobart followed suit, unveiling Anthea Harris, a former head of the Australian Energy Regulator and the Energy Security Forum, as the head of new taskforce to co-ordinate fuel security and supply chain resilience with states and territories.
Further, with many outraged by service stations’ price-gouging, the Australian Competition and Consumer Commission is investigating reports about anticompetitive conduct relating to diesel availability in regional and rural Australia.
“It is not our usual practice to publicly announce investigations, but given the significance of the issue the ACCC is confirming this enforcement investigation. We recognise the widespread concerns held by consumers, businesses and farmers about fuel pricing and supply issues arising during the Middle Eastern conflict,” ACCC chair Gina Cass-Gottlieb said.
The ACCC move is surely welcome. Albanese asks ordinary Australians to exercise restraint, but the oil companies have had open slather – when US President Donald Trump attacked Iran last month they hardly waited for the dust to settle in Tehran before they turbocharged fuel prices.
The war is now spiralling out of control, and Australians are paying the price. Some form of rationing seems unavoidable. There are understandable attempts to avoid panic, but the public deserves transparency. It’s time for the government to clearly articulate to all Australians how it will protect our future and keep the nation running.
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