New South Wales Premier Chris Minns has called for “Covid-style” protocols to manage the escalating fuel crisis, raising the prospect of national rules for fuel rationing and work from home.
Despite the Prime Minister’s suggestion such measures will be a matter for the states, NSW pushed back, warning the situation required a nationally-co-ordinated response.
Mr Minns told NSW parliament that there was a principle at stake that “we think is important”.
“We’ll be prosecuting with the Commonwealth Government and the other states, and that is that if demand management procedures are required, that might be rationing, that might be working from home, it might be other programs or remedies that we can introduce into the marketplace … it should be a nationally consistent approach,’’ Mr Minns said.
“We need a nationally consistent approach if and when the time comes when we need to introduce those demand management, a clear signal of what might be to come.”
The NSW Premier warned he did “not want to see a situation where states are having to make their own decisions and potentially come up with different answers about rationing, work from home and other questions”.
The petrol stations with no fuel
Speaking in Parliament on Tuesday, Energy Minister Chris Bowen provided a fresh update on the growing number of petrol stations that have run out of fuel.
“In NSW there are 164 without diesel, 290 without at least one type of fuel,’’ Mr Bowen said.
“In Queensland, the figure is 55 with no diesel. At 35 no regular unleaded. That’s out of 1800 service stations.
“In Victoria, the figure is 162 with one or more grades unavailable out of 1627 service stations.
“In South Australia, one or more grades are unavailable out of 700.
“In Western Australia, I’m advised, it’s six out of 771.
“In Tasmania, it is one with no diesel and six were now unleaded out of 250 service stations.
“In the Northern Territory, there are no shortages as a result of fuel supply, but there are, of course, issues in relation to flooding and road access.”
Further Adjustments to Boost Diesel Supply
The Albanese Government has now announced a temporary adjustment to diesel standards designed to increase supply.
The new measure lowers the diesel flashpoint from 61.5C to 60.5Cs, allowing refiners and international suppliers to deliver more fuel into the domestic market.
“Flashpoint changes have no impact on engines or emissions,’’ Mr Bowen said in a statement.
“Australia typically has a slightly higher temperature flashpoint owing to our hotter climate however, when the flashpoint was last lowered in 2020, we saw no adverse impact on engines or emissions.”
The National Transport Commission and the Fuel Standards Consultative Committee, which includes the Truck Industry Council, Federal Chamber of Automotive Industries and Australian Automobile Association, have supported this change.
Petrol prices rise
As the price of fuel skyrockets across Australia, reaching almost $3 a litre at some stations in Sydney and Melbourne, there are fears the price could hit $4.
According to the latest figures released by the Australian Institute of Petroleum on Monday, the national average retail petrol price rose by 18.5 cents last week to 238.0 cents per litre.
The national weekly average ‘regional’ retail petrol price rose by 22.0 cents last week to 239.6 cents per litre.
The national average retail diesel price rose by 36.8 cents last week to 282.4 cents per litre.
Diesel drivers are bearing the brunt of the spike, with prices soaring to 282.4 cents per litre after a 36.8-cent jump.
A 50-litre tank now costs more than $141 — an increase of about $18 in a single week.
For tradies and regional drivers with larger tanks, the added cost can approach $30, compounding the impact on household budgets and small businesses.
With petrol now averaging 238.0 cents per litre, a typical 50-litre tank costs about $119 to fill — roughly $9 more than just a week ago after the 18.5 cent rise.
For drivers of larger vehicles, that weekly jump can easily push the extra cost closer to $13 extra.
Regional motorists are faring slightly worse, with prices at 239.6 cents per litre. That takes a standard fill to just under $120, with the weekly increase adding close to $10 per tank.
The Albanese government has said it cannot rule out petrol and diesel prices reaching $4 per litre.
The cost of fuel has soared since the US and Israel launched co-ordinated strikes at Iran that led to the closure of the Strait of Hormuz, where 20 per cent of the world’s oil flows through.
Diesel has or is nearing $3/L for many petrol stations, while unleaded 91 averages about $2.45.
Government officials comment on future price risks
Asked if that could surge to $4 a litre in the future amid supply concerns, Assistant Foreign Affairs and Trade Minister Matt Thistlewaite did not rule it out.
“I can’t speculate on what’s going to happen with prices, but obviously, the longer the conflict goes on, the more potential it has to restrict supplies and push up prices,” he told Sky News.
“This conflict is having an effect, and the longer that it goes on, the more destabilising it could be.”.
