Australians pay price for Trump’s war at petrol bowsers
Prime Minister Anthony Albanese has moved to reassure us that our fuel supplies are now secure, but it is clear the government is preparing for a major escalation as the Middle East war erodes certainty.
The ongoing crisis, with crude oil prices rising, oil and gas infrastructure under attack by both Israel and Iran, and daily reports of panic buying and bush shortages (80 stations in NSW have run out of diesel), has prompted Albanese to reiterate his call for people not to buy more fuel than they need.
“Our fuel supply is safe at the moment. But I want us to be over-prepared. I understand that there are Australians in some parts of our country who are really worried as they watch what’s happening in the Middle East, and that’s understandable,” Albanese said.
The Prime Minister said there was “no less” fuel in Australia than there was three weeks ago, and noted that the current problem was demand, not supply.
But Australia imports most of its refined fuel from Asia and the war has led shipping distributors in Singapore, the world’s biggest fuel supply hub, to reduce purchases after facing 50 per cent fuel surcharges and falling insurance premiums. There are now doubts about how long Australia can rely on its traditional supplier if the war continues.
We’ve been here before. Oil was rationed during World War II. Two oil crises in 1979, when strikes and then the Iranian revolution blocked supply, led to panic buying and shortages. State governments have introduced measures to manage demand, including a system where gasoline can only be purchased on certain days depending on whether the car’s license plate is odd or even.
The COVID-19 crisis has proven the benefit of a national, coordinated response, and Thursday’s national cabinet meeting in Hobart followed suit, announcing Anthea Harris, the Australian Energy Regulator and former chair of the Energy Security Forum, as chair of the new taskforce to coordinate fuel security and supply chain resilience with states and territories.
Also, with many people outraged at price gouging by service stations, the Australian Competition and Consumer Commission is investigating reports of anti-competitive behavior regarding diesel availability in regional and rural Australia.
ACCC chair Gina Cass-Gottlieb said: “It is not our usual practice to make investigations public, but given the importance of the matter, the ACCC approves this enforcement investigation. We recognize widespread concerns from consumers, businesses and farmers about fuel pricing and supply issues arising during the Middle East conflict.”
The ACCC’s move is certainly welcome. Albanians are asking ordinary Australians to exercise restraint, but oil companies have been left out in the open; When US President Donald Trump attacked Iran last month, they hardly waited for the dust to settle in Tehran before raising fuel prices.
The war is now getting out of control and Australians are paying the price. Some form of rationing seems inevitable. There are understandable attempts to prevent panic, but the public deserves transparency. It is time for the government to make clear to all Australians how it will protect our future and sustain the nation.
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