Australia releases National Fuel Strategy over Iran war
- Sydney (30 March)
Australia’s National Cabinet – including federal, state, and territorial leaders – has approved a National Fuel Strategy to guide the country’s response to fuel supply pressures stemming from the US-Israeli war in Iran.
The strategy outlines planned federal and state government actions at four response levels, which are defined in terms of the severity of fuel supply disruptions, the Federal Government said on 30 March. They range from normal supply at Level 1 to disruptions requiring intervention to protect critical users and the economy at Level 4.
Australia is currently at response Level 2, indicating effective fuel supply chains but localised disruptions. The government is confident about Australia’s fuel supply until May, Federal Minister for Energy Chris Bowen said.
Australia had 39 days of gasoline reserves, 30 days of kerosene reserves, and 30 days of diesel reserves on 24 March, according to the latest data from the Department of Climate Change, Energy, the Environment, and Water.
Some regional service stations in New South Wales (NSW) have faced fuel distribution challenges over the last week. But the state does not face a supply shortage. NSW’ Minister of Energy Penny Sharpe has requested voluntary information about fuel orders and forecasts from suppliers, she said on 27 March.
Federal actions at Level 2 include adjusting fuel standards, engaging with foreign governments, and underwriting fuel purchases. States and territories will focus on monitoring, data sharing, and potential regulatory changes.
State and federal governments are encouraging people to only buy the fuel they need.
Australia’s federal government will also halve the country’s petrol and diesel excise and scrap its Heavy Vehicle Road User Charge for three months from 1 April to address fuel price increases.
NSW’ average Unleaded 91 octane petrol price stood at A$2.51/litre on 30 March, up from A$1.90/litre on 3 March, according to government-run price monitor FuelCheck. Its average diesel price increased from A$1.89/litre to A$3.07/litre over the same period.
Australia’s National Fuel Strategy comes days after Commonwealth Bank economists forecasted higher near-term inflation on the assumption that the price of Brent crude would rise to $120/barrel (A$175/barrel) by the end of June and then fall to $80/barrel. Brent crude was priced at $115.33/barrel on 30 March, according to Trading Economics.
By Avinash Govind