Welcome to our live coverage of Australia’s fuel crisis.
Australia is set to gain a multi-billion windfall over the next five years from the war in Iran due to skyrocketing coal and gas export prices, according to a report by Westpac senior economist Pat Bustamante.
“Higher-than-assumed commodity prices are expected to deliver the federal budget a windfall of almost $60bn over the five years to FY30,” Mr Bustamante wrote.
“Around $20bn of this uplift reflects the impact of the Middle East conflict, particularly via higher coal and LNG export prices. This more than offsets the $2.6bn cost of halving the fuel excise for three months.”
From today, the Albanese government has slashed the fuel excise by up to 26.3 cents a litre, saving motorists an estimated $19 when filling up a 65-litre tank. It has also cut the heavy vehicle road user charge.
The Prime Minister has dismissed more extreme measures like fuel rationing – stage three of his four-phase National Fuel Security Plan – will be triggered, stressing that the government is focused on shoring up supplies and prevention.
Preliminary government analysis produced last month assumed Australia’s diesel reserves dropping to 10 days’ supply would trigger the measure. Grattan Institute energy and climate change senior fellow Tony Wood told the ABC this morning such modelling was not about setting a “precise date” for fuel rationing, but “finding the circumstances to balance supply and demand”.
“You plan for the worst, and if you can back off that plan, then all the better,” he said.
Read on for the latest updates
