The fuel crisis spurred by the war with Iran will have a “long tail”, Environment Minister Murray Watt has warned, as the Albanese government scrambles to ensure Australia’s supplies.
Anthony Albanese on Saturday announced proposed emergency powers letting the federal government underwrite fuel cargoes.
The move came as hundreds of service stations across the country reported they had run dry while prices at the bowser continued to soar.
Senator Watt said on Sunday the government was “doing everything we possibly can to make sure that we get the fuel into the country and then get it around the country where it needs to be”.
“The longer this Middle East conflict goes on, and the longer we see the Strait of Hormuz closed, the longer that is going to have an impact on petrol and diesel supplies right around the world,” he told Sky News, adding that Australia was not the only country grappling with the fallout.
“Anywhere you look is having issues around fuel supply, fuel prices and the longer this goes on, of course, not only will it impact on family budgets, but it will impact on the national economy as well.”
He said that Canberra wanted a swift end to the conflict but that even if it ceased immediately, the effects would be long-lasting.
“The thing we’ve got to bear in mind is that even if this conflict was to end tomorrow, there is going to be a long tail,” Senator Watt said.
“We’ve seen a number of other fuel producing facilities in the Middle East destroyed or damaged as a result of this conflict.
“So unfortunately, this situation is not going to end anytime soon.”
The Albanese government must amend the Export Finance and Insurance Corporation Act to enact the proposed emergency powers, which would let it use public money to secure additional fuel imports.
The Coalition has pushed back on the plan, arguing that Australians need urgent action to shield households and businesses from skyrocketing fuel costs.
Appearing on Sky after Senator Watt, shadow attorney-general Michaelia Cash said Labor “could do two things today” for immediate relief, including cutting the fuel excise and improving distribution.
“Slash the tax, but more than that, move the fuel to where it needs to be,” she said.
“As they have said for the last four weeks, there more fuel circulating in Australia now than there was prior to the war commencing.
“How does that then mirror up with the fact that there are now over 600 … servos in Australia that have run dry?”
Asked if she doubted that Australia had enough fuel, Senator Cash said she has to “take the government at their word”.
