PM calls second emergency national cabinet meeting over fuel crisis
Anthony Albanese says it is important Australia has "national consistency" on fuel security. (ABC News: Simon Beardsell)
In short:
National cabinet will meet next week for a second time to deal with the ongoing fuel crisis driven by the war in the Middle East.
About 470 service stations around the country have run out of at least one type of fuel, while rising prices are threatening the supply of services from freight to waste collection.
What's next?
Energy Minister Chris Bowen says there are several options available to government to ease fuel pressures, including encouraging "voluntary measures" but insists they're not necessary yet.
Prime Minister Anthony Albanese will convene a second emergency national cabinet meeting as rising fuel costs and shortages threaten to disrupt a range of industries and push up consumer prices.
States and territory leaders will meet next week to further coordinate the national response to the fuel crisis as the fallout from the Iran war continues to escalate.
The government on Wednesday confirmed that about 470 service stations around the country have run out of at least one type of fuel, a small decrease from the day before
State premiers have called on the federal government to lead national coordination to tackle localised supply shortages, after Mr Albanese last week declared that states were responsible for fuel distribution.
"Indeed, coordinating that activity is important so that we have national consistency," Mr Albanese told parliament on Wednesday.
Last week, the national cabinet agreed to appoint Fuel Supply Taskforce Coordinator Anthea Harris to coordinate with the states on fuel security and supply chains.
Fuel prices have risen sharply around the world since Iran blockaded the Strait of Hormuz, a key shipping route for about a fifth of the world's oil, with Treasurer Jim Chalmers now conceding recent modelling forecasting high oil prices and inflation of up to 5 per cent looks "pretty conservative now".
He has asked Treasury to undertake modelling of more challenging scenarios.
Labor insists the fuel situation is driven by demand rather than supply shortages, urging Australians to stop panic buying.
On Wednesday, Energy Minister Chris Bowen confirmed the government had replaced six oil tankers bound for Australia that had been cancelled.
He also revealed three additional tankers had been secured.
Voluntary measures are on the table, but 'not there yet'
The government has repeatedly said it's too soon to consider fuel rationing, but Mr Bowen has indicated there are several options available to ease pressure.
"There are also voluntary measures that the government can encourage," he said.
"Governments do have [measures] at their disposal, but neither are we at that point."
The opposition is calling on the government to better direct supplies to where they're needed.
"The stocks are there, that's what they keep telling us," Opposition Leader Angus Taylor told Channel Nine.
"So the answer has to be simple. Move the stocks to the sold-out servos."
Earlier this week, the government reduced the flashpoint for diesel to allow more fuel into Australia.
It has also released about six days' worth of petrol and five days' worth of diesel from its emergency stockpile as part of an internationally coordinated response to the disruption, and last week temporarily lowered fuel standards so onshore refineries could redirect supplies into the local market.
Business wants 'every option' considered
The Australian Industry Group is calling on national cabinet to consider rationing, cuts to the fuel excise and discounted public transport.
"The federal government should now lay every option on the table," chief executive Innes Willox said.
"Employers report existing supply chains are becoming more fragile and unreliable as other economies take steps to inoculate themselves. Those impacts threaten to ripple through the economy in the time ahead."
He said employers were already seeing workers not turning up and refusing shifts as a result of "deep concern about the future".
The Business Council of Australia says the government must prioritise maintaining fuel supply and supply chains, while also backing increased use of public transport and car pooling.
Both AIG and the Business Council are warning the government to avoid mistakes made during the COVID-19 crisis and ensure a coordinated national approach.
"While this isn't a pandemic, it will have real economic impacts, and we need to work together on practical solutions that support supply and minimise disruption," BCA head Bran Black said.
Nationals senator Bridget McKenzie believes cutting the fuel excise would actually punish the transport industry as truck operators are already eligible for tax rebates.
"Transport operations don't actually get relief," she told Channel Nine.
"That won't stop that flow in impact across goods into supermarket shelves."
She says the industry wants GST relief for a limited period instead.
