Energy Minister Chris Bowen has ruled out implementing a $40 fuel limit, saying the proposal is “a bit out of date”.
Documents acquired by former crossbench senator Rex Patrick revealed on Wednesday a national fuel emergency response manual that could enforce a $40 cap on fuel pumps.
Finessing the plan would be up to the National Oil Supplies Emergency Committee, headed by federal energy officials and comprised of state counterparts and major fuel providers, including Ampol, BP, ExxonMobil and Viva Energy.
Energy Minister Chris Bowen could not authorise it without the sign-off from Governor-General Sam Mostyn – the Crown’s representative in Australia.
Speaking on Sky News, Mr Bowen denied Australians were “even at the point” of considering their petrol use, despite the International Energy Agency calling for consumers to reduce fuel consumption through measure such as carpooling and working from home.
Asked about the plan, he said “we wouldn’t do that”.
“That’s part of the National Liquid Fuel Emergency plan option,” he said.
“This plan has existed since 2006. It’s got various ways things might roll out, which governments can work with. It’s sort of a suite of options.
“I’ve pointed to this plan in the past and been saying, look there are preparations in place for the very worst case… in that sense, it’s a bit of an out of date document in terms of that $40 approach.”
Mr Bowen said he was “not contemplating” a potentially higher price point.
He said he did not “envisage” declaring a national emergency, a prerequisite to trigger the National Liquid Fuel Emergency Act.
Mr Bowen said the government was working with the states and territories, which do have power to introduce their own rationing, with a much lower threshold.
Under the plan, the governor-general is supposed to act on advice of government and defying advice could spark a constitutional crisis.
“The Governor-General today declared a National Liquid Fuel Emergency, under the Liquid Fuel Emergency (LFE) Act,” a sample press release included in the FOI documents read.
“Motorists can only purchase [x] dollars of fuel per vehicle per day.”
A mock quote attributable to the prime minister or energy minister of the day said: “I’d encourage all Australians to consider ways that they might be able to reduce their fuel use until we’re able to return supply to normal levels.
“Using public transport, working from home and carpooling, as well as reducing the amount of non-essential driving will all help to reduce demand for fuel and allow us to manage available fuel supplies efficient and fairly.”
There would be exceptions for essential services, which included emergency services, defence vehicles, public transport and taxis.
Ministers grilled on the plan on Wednesday dismissed it, with Environment Minister Murray Watt insisting the government was “not considering this idea of a $40 price cap”.
“That comes from a document from the then-government which was released in 2019 and the situation has obviously changed between 2019 and 2026,” he told reporters.
“However, we do encourage Australians to be sensible about the amount of fuel they buy.
“We know there are real issues getting fuel into some parts of the country at the moment and it’s one of those times that we need to think of each other and not just ourselves and only purchase the fuel that we need.”
Infrastructure and Transport Minister Catherine King also denied the government was considering the plan and called it “an old document”.
