Albanese warns of Iran war ‘tail’ as fuel reserves reach 46 days
Anthony Albanese has revealed Australia faces a “long economic tail” due to the war in the Middle East, despite fuel reserves being higher than before the conflict.
The Prime Minister met with state and territory leaders for the national cabinet on Thursday; This was the first time since the ceasefire between Iran, Israel and the United States came into effect.
Speaking to the media, Mr Albanese said Australia’s supply outlook “remains safe in the near term” but the government was working to be prepared in the event of further disruptions to fuel and fertiliser.
The Prime Minister thanked Australians for “voluntary” changes in behavior that he said had contributed to oil reserves rising to 46 days.
Reserves are currently about 51 percent of the International Energy Agency’s minimum 90-day reserves, but are higher than the 36-day reserves when the war began on February 28.
But Mr Albanese said even if the conflict ended immediately and the Strait of Hormuz was fully reopened, Australia would still face a “time lag” before the economic consequences of the two-month-long conflict “be reflected in the system”.
“It takes time to clear the strait to make it safe,” Mr Albanese said.
“It will take time for ships stranded in the Gulf to reach their destination, unload their cargo and then return for more supplies.
“So there will be a long economic tail here.”
Currently, six cargo ships carrying more than 300,000 liters of diesel are heading to Australia.
Mr Albanese said the federal government would “do our best” to determine whether future cargoes could be purchased on the spot market.
The Prime Minister also praised the diversification of the government’s fuel supply.
The United States, which has not traditionally been a major fuel supplier, accounts for about 18 percent of imports, Mr. Albanese said.
He added that Argentina, which was “really very small”, is now “in double digits”.
Algeria in North Africa also supplied fuel to Australia.
Energy Minister Chris Bowen said Australia still faced “international headwinds”, risks and uncertainties in the medium term.
“There’s nothing left on the ground when it comes to ensuring Australia is in a very good position,” he said.
