Updated ,first published
The Coalition is uniting with farmers to demand the Albanese government ensure critical industries do not run short on fuel, as fears over price spikes and a protracted war in Iran drive widespread panic-buying in regional areas.
Energy Minister Chris Bowen assured Australians there was currently no shortage based on the fuel stocks held in Australia or in the volumes coming into the country. The government called an urgent meeting of a new fuel taskforce on Tuesday afternoon, where ministers and industries including farming and transport committed to work together to identify and address supply chain issues.
Bowen said on Tuesday that no shipments of diesel, petrol or jet fuel to Australia had been interrupted, declared that shortages of fuel were caused by panic buying in regional communities and said Australia had a months worth of petrol and diesel in reserve.
“When demand goes up so much, it puts huge pressure on supply chains, but… fundamentally Australia’s fuel security is good because of the minimum stock obligations that we have put in place.”
The taskforce includes farming organisations, fuel suppliers, Industry Minister Tim Ayres and Agriculture Minister Julie Collins, as well as the peak lobby group for the fertiliser industry, which is facing a global supply crunch. It will discuss concerns that fuel wholesalers are hoarding supplies and reports that farmers are panic-buying to avoid future price spikes.
Bowen on Tuesday clashed with Queensland’s deputy premier, rejecting Jarrod Bleijie’s suggestion that Australia’s strategic fuel reserve of 36 days’ worth of petrol had already been reduced by 10 days, and accused him of intentionally spreading fear in the community.
“The deputy premier of Queensland has intervened in the debate in an irresponsible, dishonest fashion for which he should be ashamed,” Bowen said.
“Either he doesn’t understand how the law works, or he has deliberately misled Australians and engaged in encouraging panic buying.”
The future of Australia’s energy security remains uncertain while oil tankers are unable to sail through the Strait of Hormuz – which typically carries a quarter of global oil supply – while Iran attacks neighbouring nations in retaliation for the bombardment of its country by the US and Israel.
The Middle East region also produces about 45 per cent of the global fertiliser supply.
Independent fuel suppliers have reported difficulty in filling orders, as major companies restrict distribution. Social media is awash with reports of regional motorists claiming their local service station is empty, and farmers reporting diesel price spikes and delays to orders from private suppliers.
Victorian Farmers Federation president Brett Hosking said grain growers were particularly concerned about fuel and fertiliser supplies because they will soon start planting winter crops such as wheat and barley.
“We want to see some level of government intervention to ensure robust supply chains, and that agriculture is treated with a degree of importance because we only get one window to plant a crop,” Hosking said.
While there is believed to be enough urea on hand to plant, which typically starts in April, prices were already rising, and farmers are worried about how expensive it could be to fertilise their crops as they grow.
“Government will need to act swiftly and decisively to resolve this issue for all Australians,” said NSW Farmers grains committee chairman Justin Everitt. “The next couple of weeks are a critical window for farmers to start growing next year’s bread, pasta and Weet-Bix, so this needs to be resolved this week.”
Opposition energy spokesman Dan Tehan said Bowen should have already used federal powers to commandeer supply chains.
“He’s not using those laws to get that full transparency in place to get that fuel moved,” Tehan said.
“What is he doing to make sure it’s distributed evenly across the country so that we don’t have certain areas and key industries that are missing out? And he needs to be doing the same when it comes to fertiliser.”
A meeting overnight of G7 nations and the International Energy Agency decided against releasing strategic oil reserves but said it was ready to do so in the future.
The global benchmark for oil, Brent, soared to $US116 ($165) a barrel but has since fallen to less than $US90 since US President Donald Trump declared the war would be over soon.
Regular unleaded fuel was retailing for around 219.9¢ at many service stations in Sydney and Melbourne on Tuesday morning.
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Mike Foley is the climate and energy correspondent for The Age and The Sydney Morning Herald.Connect via email.