Energy Minister Chris Bowen has conceded there is “more work to do” to tackle fuel shortages, after revealing 3.4 per cent of service stations across the country had run out of diesel.
Shortages at the bowser, particularly in NSW, were a result of prioritising fuel to farmers so they could ensure the security of crops during planting season, Mr Bowen told reporters at the end of the Easter long weekend, where fuel demand was up as much as 30 per cent.
“But in New South Wales in particular, where we’ve been focusing with the industry on getting fuel to farmers because it’s sowing and seeding season, so therefore our service station numbers out of diesel have been higher than anyone would like,” he said at a press conference.
“Because I think rightly, people have been prioritised in getting diesel to our farmers to make sure they can get the seeds into the ground.
“So again, lot of hard work been done over the Easter break, by the fuel companies, by the servo workers, not everyone was able to have a day off. And thank you to all those workers who worked so hard.”
But he also confirmed Australia’s fuel supply had been secured “into May”, before adding: “That’s not to say that, of course, there is a risk in international circumstance and international situation, but every step that can be taken is being taken.”
The latest update puts the nation’s supply at 39 days worth of petrol in reserve, 29 days of diesel and 29 days of jet fuel.
Mr Bowen also warned the long term effects of oil and gas shortages from the Middle East could not be “100 per cent be predicted”, as major Middle Eastern oil producers promised to increase output.
“Even if the Strait of Hormuz opens tomorrow, there’s going to be impacts for quite a while for the world to recover,” he told Seven’s Sunrise earlier.
“There’s been gas fields and production facilities bombed. They take five years to rebuild, for example. So there’s going to be some impact.”
The sooner the Strait opened, the sooner the international economy would settle and fuel prices would normalise, Mr Bowen said.
“But every bit of delay means that tail, that tail is going to be there for quite a while and maybe show itself in ways that can’t 100 per cent be predicted.”
Donald Trump made a wild online post overnight Australian time, calling for the vital Strait of Hormuz shipping lane to be opened and also threatening to attack civilian infrastructure.
“Tuesday will be Power Plant Day, and Bridge Day, all wrapped up in one, in Iran,” he posted on his Truth social platform.
“There will be nothing like it!!! Open the F***in’ Strait, you crazy bastards, or you’ll be living in Hell – JUST WATCH! Praise be to Allah. President DONALD J. TRUMP.”
Closure of the Strait has cut oil exports for Saudi Arabia, the UAE, Kuwait and Iraq; members of the OPEC+ oil-producing alliance.
On Sunday, OPEC agreed to increase oil output quotas by 206,000 barrels per day for May – a move which is symbolic given the major exporters are stymied by the Strait’s closure.
But OPEC+ sources told Reuters the output lift was a signal of readiness for once the waterway reopened.
Oil prices are at a four-year high at about $US120 a barrel, inflating transport costs for oil able to get out of the Middle East. JP Morgan forecasts prices could hit $US150 if the Strait stays close to mid-May.
The effect of the uncertainty in Australia is a huge spike in demand for diesel, particularly during planting season on arable farms.
The oil refinery at Geelong, owned by Viva Energy, saw a 30 per cent increase in sales for the Wednesday and Thursday before Easter compared to the same days last year, Mr Bowen said.
While diesel demand remains high, petrol demand is normalising, Mr Bowen says.
Shortages have been particularly acute in NSW, where on Friday 182 service stations were out of diesel, and 48 were totally dry. On Sunday, 145 stations were without diesel, the Minister said, with fulsome national figures expected later on Monday.
“That’s big progress,” he said of the increased refilling of service station tanks.
