Panic buying blamed for supply issues as prices soar amid Middle East conflict
Fuel prices may have increased, but panic buying is thought to be at the root of supply problems for drivers in Western Australia.
As gasoline and diesel prices skyrocketed overnight, some fuel stations have imposed limits on the amount of fuel that can be purchased to manage the recent increase in demand.
Fears that fuel prices would rise as a result of ongoing conflict in the Middle East came true on Tuesday, with diesel rising to 238.9 cents per liter and gasoline rising to 219.9 cents per liter in the Perth metropolitan area.
But Premier Roger Cook has assured Western Australian motorists that fuel is still arriving in the state in regular quantities and panic buying is not necessary.
“I know Western Australians are concerned about the impacts of this war and how it might affect the state, and I know one of those concerns is around fuel prices and a lot of Western Australians are already feeling that on the bowser,” Cook said during questioning in state parliament on Tuesday.
Cook said the state government was closely monitoring the fuel situation across Australia for any impact on WA.
“The latest advice remains that there will be no direct impact on contracted fuel supply,” he said.
“Fuel continues to arrive in Australia in the quantities and frequency we expect, but I am aware that demand is increasing and we are seeing reports of temporary disruptions at some retailers.”
To combat this, Cook will hold a “fuel security roundtable” on Wednesday with fuel suppliers and key industries that rely on a stable fuel supply to “gain insight” into what they are facing on the ground.
“We want to ensure West Australians have the most competitive fuel prices possible,” he said.
Minister calls for halt to panic buying
Earlier on Tuesday, Energy Minister Amber-Jade Sanderson appealed to motorists to stop panicking when buying fuel.
“We’re seeing right now that it’s demand, not supply, that’s causing the disruption,” Sanderson said at a news conference.
“So all the contracts are being filled, they are being filled with 100 percent certainty. But where the disruption is happening is where people are panicking and buying or stockpiling fuel.”
“So we respectfully ask people not to do this.
“People are using more than they normally would, so they’re buying more than they normally would. They’re filling up their cars more than they normally would, and that’s straining the domestic supply chain.”
Meanwhile, there are limited restrictions on how much fuel drivers can buy at a time at fuel stations.
Gnowangerup Fuel Supply in Great Southern told drivers they could only purchase $200 worth of fuel due to recent panic buying.
“Our bowsers are still operating but we have had to impose restrictions. Maximum spend is $200,” the station said on social media Tuesday.
“Shell cards are currently unavailable. Please don’t try to stock up, just be careful what you use so everyone can have them. Hopefully we can get back to normal soon.”
WA Police Commissioner Col Blanch compared stockpiling fuel to hoarding toilet paper during COVID.
“It’s a bit like the toilet paper debacle with Covid-19, I think we just need to be sensible because people over the age of 40 have probably experienced this many times in conflicts in the Middle East and other conflicts around the world,” he told Radio 6PR on Tuesday.
“I’m pretty sure we’ll get out the other side from here and everything will be fine, fuel might be a little expensive for a while.”
But if things get worse, Blanch said he will have a role to play in easing the crisis.
“I am also the State Emergency Coordinator, and although the fuel situation is not a situation yet, it is just a price increase situation, if it turns into a shortage situation, if this war escalates then it can turn into an energy emergency,” he said.
“We are a long way from that, but as the state emergency coordinator, then I will have a role to play.”
Farmers feel fuel pressure
WA opposition agriculture and food spokesman Lachlan Hunter has expressed concerns about the impact of diesel shortages on local farmers
Hunter said farmers in Western Australia had reported diesel deliveries had been halted, with some saying supplies might not resume for up to six weeks.
“Some operations have already been shut down because they cannot get the fuel they need to run their machines,” he said.
“This should alarm every Western Australian.”
During federal parliamentary questioning on Tuesday, National O’Connor MP Rick Wilson also raised concerns about farmers in the regions not being able to access fuel.
“Dom, a potato farmer in Manjimup, texted me, ‘I called Fuelswest yesterday to order some fuel, they told me they didn’t have fuel and there was a three week waiting list for delivery. I’ve got 10 days of fuel left and you won’t be eating my potatoes from now on,'” Wilson said.
“Last week [Energy Minister Chris Bowen] He said our fuel stocks were in good shape; Can the minister reassure Dom that they will get the fuel they need?”
In response, Bowen acknowledged that although fuel supplies were “in very good shape” there could be real pressures on regional diesel supplies.
“We all have a duty… [to make the point] “We have good supplies of petrol, diesel and jet fuel to Australia and there is no need for panic buying,” Bowen said.
“It’s not a disruption in shipping to Australia, it’s what’s causing the supply chain restrictions, it’s the massive spikes we’ve seen in demand that haven’t happened yet, we’re aware of the risks, but at this point it hasn’t happened.”
government intervention
Asked Tuesday morning whether the government would use its authority under the Oil Pricing Act to put a cap on oil prices, Sanderson said “everything is on the table.”
“Of course there are provisions in the law that allow the government to intervene to a certain degree and in a variety of situations, we are looking closely at that, but we also need to understand the possible unintended consequences here and the potential disruption that this could cause,” he said.
Cook said he has been calling on retailers over the past few days to “stop taking advantage of the anxiety consumers are experiencing right now.”
“I think what you’re seeing across the state right now is everyone is fueling up, filling up their storage tanks, filling up their canisters, filling up their cars, and so you’ve seen a temporary surge where our business as usual, the supply chains, are not able to respond in the days immediately following,” he said.
“But as we continue to see supply chains being resilient and fuel flowing into the state, we expect things to continue to improve.”
FuelWatch expects diesel prices to reach 259.9 cents per liter and gasoline to 234.9 cents per liter across Perth on Wednesday.
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