Under the pump: extra fuel to flow as premiers, PM meet
Fuel flows from Australia’s emergency stocks are expected to begin soon in response to the war in the Middle East, as state and territory officials prepare for crisis talks on the issue.
An agreement was reached between Energy Minister Chris Bowen and Australia’s fuel companies on Wednesday to release extra gasoline and diesel to regional areas facing critical shortages, AAP has learned.
Two sources close to the meeting said the deal had been discussed at a roundtable held by Transport Minister Catherine King but had not yet been officially announced by the government.
The meeting comes ahead of a national cabinet meeting on Thursday between the prime minister and state premiers to discuss major price shocks and shortages caused by the war between the US, Israel and Iran.
State leaders are demanding faster action from the Commonwealth on the crisis and a long-term plan to deal with fuel shortages if the dispute is not resolved quickly.
The national cabinet plans to appoint a fuel tsar to lead the country’s response, Prime Minister Anthony Albanese announced on Wednesday.
“I will ask the state premiers and chief ministers to appoint someone, a key person, so that the Commonwealth can cooperate in a way that enables us to deal with the current challenges,” Burnie told reporters in Tasmania.
NSW Premier Chris Minns said the meeting was an opportunity to tackle challenges around fuel supply, particularly the availability of diesel.
“We would like to see a national plan that sets out a clear path forward for escalation, including what measures can be taken if conflict continues and conditions deteriorate,” he said in a statement.
In addition to allowing fuel companies to remove a week’s worth of gasoline and diesel from emergency stocks, the government has also relaxed quality standards to allow more fuel to enter the market.
But he kept his cards close to his chest when asked about further potential measures.
Finance Minister Jim Chalmers said more announcements would be made in the coming days but gave few details.
“We are preparing for the risk of longer outages, including working with international partners to help insulate industries that are more exposed to fuel, such as farming, transport and mining,” he told ABC TV on Wednesday.
Western Australian Premier Roger Cook said he would use the meeting to raise concerns about how long it would take to release fuel from the country’s strategic reserves.
“The last thing we need is for some bureaucrats in Canberra to sit down and take the time to think about what a national challenge is,” he told reporters on Wednesday.
The Australian Trucking Association has called for disaster funding to be provided to haulage companies struggling with rising diesel costs and reduced road user charges.
Logistics companies have warned that they are under serious pressure as increases in fuel prices will likely be passed on to consumers.
