Diesel boost on the water for bottlenecked regions
The federal government has provided an extra 40 million liters of diesel to address the bottleneck in Queensland supplies.
The shipment is expected to arrive in Brisbane in the coming days, thanks to an agreement between Export Finance Australia and independent supplier Freedom Fuels.
It will then be distributed statewide to meet supply constraints at regional and independent service stations starting in June.
Anthony Albanese said the fuel was in addition to 16 shipments already secured with the help of Ampol, BP, IOR and Viva Energy in response to global supply instability triggered by the conflict in the Middle East.
“This is a win for regional Queensland at a time when they need it most,” the Premier said on Saturday.
“It comes through a partnership between our government and a business with proven and reliable ways to ensure fuel reaches the farmers and ranchers who need it.”
The temporary relaxation of Australia’s Minimum Stock Holding Obligation for petrol and diesel will also be extended by three months, Energy Minister Chris Bowen said.
This measure ensures that bulk importers and refiners maintain the basic stock level at all times.
The extension will effectively allow suppliers to keep 20 percent less diesel and gasoline in reserve, as long as they commit to supplying more fuel to the domestic market by the end of September.
“This measure provides ongoing flexibility for the industry to respond quickly in the event of another significant increase in demand,” Mr Bowen said.
But Australia’s domestic assets have given the government confidence that a three-month extension would strike the right balance if global conditions worsen.
Mr Bowen said supply tankers were arriving at Australian ports but the ongoing closure of the Strait of Hormuz continued to disrupt markets.
“Even if shipping resumes, it will be months before global flows of fuel and goods return to normal,” he said.
Mr Albanese said the government had also secured an additional 205,000 tonnes of agricultural fertilizer under Strategic Reserve powers.
Australia now has 48 days worth of oil on hand, or 12 days more than when Iran was first bombed.
It holds 36 days of diesel or an extra four days, 30 days of jet fuel or an additional day.
Some 46 ships are also at sea, ready to carry various types of fuel.
Latest Australian Bureau of Statistics Business Conditions and Emotions Research It reveals that fuel prices and supply negatively affect 72 percent of businesses across the country.
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