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Australia has just over a month of diesel and petrol supplies available if imports were disrupted, the Federal Government confirmed in Parliament this week, as escalating tensions in the Middle East raise fresh concerns about global fuel security and possible price rises.
Energy Minister Chris Bowen told Parliament Australia currently has 34 days of diesel, 32 days of jet fuel and 36 days of petrol available.
Mr Bowen provided the figures during Question Time in response to a question from One Nation MP Barnaby Joyce about the country’s fuel security as the conflict in the Middle East intensifies.
He said fuel stocks were currently at their highest levels in 15 years, arguing the situation had improved since the Albanese Government introduced minimum fuel-holding requirements.
However Mr Joyce questioned whether those figures referred strictly to fuel stored within Australia, noting some stocks counted were on vessels within Australia’s Exclusive Economic Zone and could potentially be diverted elsewhere.
Mr Bowen confirmed the numbers included fuel already in Australia or on ships within Australia’s economic zone, but did not include tankers still overseas.
“Urgent action needed” to secure fuel supply: VFF
The issue has drawn attention from farm groups concerned about the potential impact of global instability on Australia’s highly import-dependent fuel supply.
The Victorian Farmers Federation says recent geopolitical tensions highlight vulnerabilities in the country’s supply chain and the importance of reliable fuel access for agriculture and regional communities.
VFF president Brett Hosking said modern farming relies heavily on liquid fuels to run machinery, harvest crops and transport food and fibre.
“A secure, resilient and affordable fuel supply underpins modern agriculture,” Mr Hosking said.
“If our fuel supply runs dry, our agriculture industry and ability to feed millions would stop in a heartbeat.”
Australia has been non-compliant with the International Energy Agency requirement to hold 90 days of net fuel imports since 2012, although the government maintains strategic reserves overseas that could be accessed in an emergency.
Meanwhile, Nationals leader David Littleproud called on the ACCC to take action on any petrol station looking to take advantage of the conflict to artificially inflate prices for consumers.
“Fuel prices went up on Sunday, in a matter of hours after the first airstrike,” he told Sky News.
“The reality is there are reserves that they’d paid for, already at a lower price, before factoring any conflict in the Middle East, and the ACCC needs to make sure that their first action is to ensure that they’re not being, that consumers are not being gouged.”
He also urged Australians not to panic buy, saying supply chains were still operating and the situation remained “fluid”.
“It’s important Australians don’t exacerbate the situation by panic buying. There are supply chains in place to ensure continuity of supply,” he said..
Industry groups say the unfolding situation highlights the broader need for Australia to strengthen domestic fuel storage.
The VFF is calling for:
- Greater onshore fuel reserves to reduce reliance on overseas imports;
Support for domestic refining capacity to keep at least part of Australia’s liquid fuel supply national;
Policy settings that recognise fuel security as part of Australia’s critical infrastructure and economic resilience
Further investment into diversified fuel options, such as biofuels.
I am not sure why this is news. It’s been at this level for 20 years. The big problem is our lack of refinery capacity
Hi Mal, worth noting Australia was compliant with the International Energy Agency requirement to hold 90 days of net fuel imports as recently as 2012, as mentioned in the article. Editor