Energy Minister Chris Bowen has claimed the amount of fuel in Australia could be “higher than it normally would be” after extra orders were placed with suppliers, as he sought to reassure Australians amid fears of a looming supply shortage.
The Albanese government’s claims around Australia’s fuel stockpile have come under intense scrutiny over the last week, as hundreds of bowsers ran dry across the country.
It follows severe energy shocks triggered by US-Israel war on Iran, which disrupted oil shipments globally after Tehran imposed a de facto blockade on cargoes passing through the Strait of Hormuz.
The closure of the critical shipping channel has affected about 20 per cent of the world’s oil supply.
But the government has insisted Australia’s fuel supply is secure and doesn’t anticipate shortages to hit before May. It has claimed panic buying is fuelling localised shortages in rural and regional areas.
This week, Mr Bowen confirmed six previously cancelled oil shipments had been replaced by alternative cargoes. He pointed to this, and the ordering of three additional cargoes, to reassure Australians of the national fuel supply during a joint press conference with Anthony Albanese on Thursday.
“As I previously indicated, that the six cancelled shipments to Australia … have been replaced by alternative sources, by new cargoes, and indeed, at least three other extra cargoes have been ordered by our refiners and our importers,” Mr Bowen said.
“So that for the next few weeks, Australia’s supply of petrol and diesel and oil will be the same, if not higher than it normally would be.”
He also sought to quell uncertainty about booking flights over the upcoming Easter break due to concerns of jet fuel shortages.
“I can confirm there are currently, as we speak, six cargo loads of jet fuel on their way to Australia, which is the normal level to be expected at this time, none of them have been cancelled,” he said.
The Prime Minister earlier argued his government was taking all practical steps to help shield Australians from a “global crisis”.
“This war is real. This war is having an impact on Australians, like it’s having an impact right around the world,” Mr Albanese said.
“You can’t wish that away. What you can do is respond in an appropriate, orderly, adult way of working with industry, working with different levels of government to make a difference.
“To make sure that we ensure that supply is there of fuels, but also make sure that you deal with the pressures, that we understand this creates for small businesses, for farmers, for the Australian public, dealing with these cost of living pressures, which are very real as a result of the inflationary impacts here and around the world.”
Australia’s fuel supply outlook remained secure over the near term, he said, but warned the longer the war dragged on, the greater the impact would be.
“But we continue to act to prepare and shield Australians from the worst of it … On Monday, I will again convene the national cabinet. A global crisis needs a national response, and that is what we are doing,” he said.
Emergency fuel conservation measures, including rationing, have not yet been pushed out by the government, but it is understood Mr Albanese‘s upcoming national cabinet meeting will consider a national approach to the issue.
