Fuel crisis: Chris Bowen considers petrol rationing as hundreds of stations run out
Federal Climate Change and Energy Minister Chris Bowen confirmed fuel rationing has been reviewed by his department as more than 200 service stations ran out of petrol in NSW, Queensland and Victoria.
The Federal Government is modelling fuel rationing in response to warnings Asian nations will cancel shipments - leaving shortages that have left hundreds of service stations running out of petrol.
Federal Energy Minister Chris Bowen told Question Time on Monday that more than 200 service stations in NSW, Victoria and Queensland are without at least one type of fuel as he confirmed his department had modelled the possible effects of rationing.
“Of course, I have engaged with my department in prudent contingency planning,” he said under Opposition questioning, adding rationing was a “long way” off.
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By continuing you agree to our Terms and Privacy Policy.A national approach to fuel rationing would be more severe than the 1973 oil crisis, stemming from the Arab-Israeli Yom Kippur War, that saw States such as South Australia restrict fuel purchases of their own accord.
“The Commonwealth and the States will continue to work together for prudent contingency planning in a very challenged international environment,” Mr Bowen said.
The latest tally of service stations without unleaded fuel included 37 out of 2444 stations in NSW, Mr Bowen told Parliament, on top of the 105 outlets without diesel, which NSW Premier Chris Minns confirmed on Monday.
Another 47 service stations in Queensland are without diesel and 32 lack unleaded out of more than 1800 sites, while in Victoria 109 stations are without at least one or more types of fuel, including 50 without diesel.
Australia sources 80 per cent of its refined fuel from refineries in Asia that rely on crude oil from the Middle East, with panic buying already occurring before shipments to Australia, due next month, were cancelled.
The crude oil needed to make the petrol and diesel had most likely left the Strait of Hormuz before Iran blockaded a fifth of the world’s supplies, Strategic Analysis Australia head of research Marcus Hellyer told The Nightly.
“It is highly likely that more shipments will be cancelled as countries such as Singapore or Malaysia or Japan, South Korea, China - all those countries that we buy our refined oil from will start holding it for their own needs,” he said.
“The Government has said, ‘Well, the shipments are still coming.’ Sure, but when you look at the time lines involved, crude oil from the Gulf to refineries in south-east Asia or north Asia and then on to Australia - the oil that is reaching Australia now essentially had left the Middle East before the current war started.”
Victorian Premier Jacinta Allan on Monday morning called for a nationally coordinated approach on emergency measures rather than leaving it to the States to decide.
“Should there be a broader supply issue, there would need to be a national approach here,” she said.
“We are not there yet. It’s my view that it is something that does need to be co-ordinated.”
Mr Minns said the 105 service stations without diesel in NSW were “almost exclusively in the regions” while 35 had no access to any kind of fuel.
But he talked down the prospect of rationing.
“I wouldn’t say likely. The public would expect us to have a plan and implement it step by step based on what happens in the Middle East,” he said.
The NSW Labor Premier has flagged government intervention to force the oil companies to provide fuel to independent service stations, who buy a spot prices on the wholesale market and don’t have contracts like the big retailers.
“We have that power but in the first instance, we’re speaking with them to understand why if fuel supply is shown to be available, why independent petrol stations are unable to purchase it on their internal systems,” he said.
Mr Bowen said supply constraints in Western Australia, particularly in remote and regional areas were coming down, but did not give specific details.
He declined an Opposition demand to reveal how many stations in Tasmania, South Australia and the Northern Territory were without fuel, but said he would be participating in a discussion with the Tasmanian Government later on Monday.
The confirmation about the fuel supply crisis was made a day after Mr Bowen confirmed six ships destined for Australia from mid-April to mid-May had been cancelled or deferred out of the usual 81 ships that were scheduled to arrive.
Prime Minister Anthony Albanese on Monday confirmed a deal had been reached with his Singapore counterpart Lawrence Wong to secure the “flow of essentials goods including petroleum oils, such as diesel, and liquified natural gas between our two countries”.
“We’re working to secure the fuel Australia needs with our international partners and longstanding friends,” he said.
“We’ll keep working closely as we deal with the impacts of the conflict in the Middle East.”
Singapore is Australia’s biggest source of petrol, last year supplying 55 per cent of refined unleaded.
Iran’s blockade in the Strait of Hormuz has constrained the global supply of crude oil.
Australia last year imported 49.2 billion litres of unleaded, diesel and jet fuel shipped in from refineries in Asia that mainly source crude oil from the Middle East.
South Korea is the biggest supplier of diesel.
Thailand, last year Australia’s 14th biggest source of diesel, has now banned exports.
Australia’s two refineries in Brisbane and Geelong last produced 12 billion litres of fuel, as Australia also imported 10.2 billion litres of crude oil and refinery feedstocks.
The conflict in the Middle East could hamper the supply of crude oil from Oman, but alternative supplies for Australia’s refineries also come from Malaysia, Brunei, the US, Vietnam and Argentina.
