Fuel supply chain coordinator to be proposed at national cabinet meeting
Anthony Albanese will meet with state and territory leaders tomorrow. (ABC News: Matt Roberts)
In short:
The government will propose appointing a coordinator to oversee supply chains at a national cabinet meeting tomorrow amid concerns over Australia's fuel supply.
Prime Minister Anthony Albanese has been under pressure to take further action to avoid disruptions to petrol and diesel availability as the Middle East war continues.
What's next?
He said the government would announce further measures to shield Australia from the global shocks in coming days.
The prime minister will propose appointing a coordinator to oversee fuel supply chains at a national cabinet meeting tomorrow, as he vows to take further action to shield the country from global disruptions.
Anthony Albanese will convene the virtual gathering of state and territory leaders from Hobart, with the talks to focus on strengthening state-federal cooperation in the face of demand-driven shortages of fuel.
Government sources said the coordinator would act as a bridge between bureaucrats and the private sector, with the states and territories also asked to nominate a point person for ongoing communication.
Fuel prices have risen sharply around the world since Iran's blockade of the Strait of Hormuz, a key shipping route for about a fifth of the world's oil, with the government warning the clog could see inflation peak in the "mid-to-high fours" depending on the length of the conflict.
The government has already released about six days' worth of petrol and five days 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.
Labor has been adamant that the current situation is driven by demand rather than supply shortages, while the opposition has repeatedly called on the government to do more to protect Australians from the global shocks.
Mr Albanese, in an address to the Australian Automotive Dealer Association today, declared the government was prepared to take further action "in the days ahead".
"We want to make sure that we do everything we can to shield the Australian economy, households and businesses from the worst of global uncertainty,"he said.
"That will also be a focus of our budget coming up in May, but we won't be waiting until the budget."
At a media conference a short time later, the prime minister said fuel shipments had continued to arrive on schedule so far, and blamed the current shortages on a surge in demand.
He urged Australians to hold off panic-buying, as he stressed that Australia does currently have fuel security.
"My message to Australians, as well, is don't take more fuel than you need, that is how you can help: think of others, be a good neighbour, a good community member and a good Australian," he said.
"Just take what you need. Be sensible."
Transport Minister Catherine King held a fuel security roundtable with stakeholders from the transport industry this morning, a day after the competition watchdog hauled in fuel suppliers and retailers to explain the jump in petrol prices since the war.
The government plans to introduce legislation in the coming sitting week to double the penalties for petrol companies who engage in "false or misleading conduct or cartel behaviour", with maximum fines of $100 million per offence.
Opposition demands plan from Labor
Andrew Hastie, the shadow minister for industry and sovereign capability, today accused Labor of being slow to address the crisis and of failing to have a plan to deal with the blockade in the Strait of Hormuz.
"I welcome the fact that they're going to call a meeting of the National Cabinet because we really need to get on top of this," he told the ABC.
"Post-World War II, the lesson was that if you wanted to be self-sufficient in a geopolitical crisis and during a massive rupture, you needed to have certain amounts of infrastructure and industry, particularly oil refining. So I think we're learning the hard lesson again."
Treasurer Jim Chalmers said the "key determinant" of the severity of the domestic impact would be the length of the conflict.
"At the time that we're at right now, where we're trying to finalise forecasts for the budget … really the key uncertainty is how long this thing drags out for and also reasonable assumptions about how quickly the global economy could get back on its feet if there was an end to the most dramatic hostilities," he said.
"The assumption that if the war ended tomorrow, the global economy would be fine the day after, I think, is a naive one."