Australia to release nearly 20% of fuel stockpile as Bowen insists country ‘nowhere near’ running out | Business
Australia will begin freeing up fuel stocks after the government ordered fuel companies to release almost a fifth of their reserve stocks of petrol and diesel.
Energy minister Chris Bowen acknowledged fuel supplies could face further pressure but ruled out cuts to fuel excise duty or rationing of fuel purchases.
Bowen said fuel companies had reduced their minimum stock obligations to about 2.2 billion liters of diesel and 700 million liters of gasoline respectively, earmarking about 500 million and 300 million liters respectively to be diverted to regional Australia.
The fuel will not be released immediately, and Bowen said he could not be sure when the fuel would reach Australia, where some places no longer have access to fuel, because “it’s a big country and every town is different.”
The stockpile will be Australia’s contribution to the international community’s agreement to release 400 million barrels of fuel, which the International Energy Agency agreed to on Wednesday.
Bowen said petrol use remained unchanged but demand for petrol and diesel across Australia had doubled. He acknowledged that a prolonged US war against Iran could put more pressure on oil suppliers, but said the country was “nowhere close” to running out of fuel.
“Will there be further threats to fuel suppliers if the international situation continues to deteriorate, of course,” he said.
He said fuel supplies were continuing to arrive in Australia and 80% of reserves, or the minimum stock obligation, remained in place.
On Thursday the federal government announced it would allow lower-quality petrol containing more sulfur to be used on Australian roads, but left diesel standards unchanged.
Opposition energy spokesman Dan Tehan called on Bowen to consider lower fuel standards for diesel.
“He did it for the oil,” Tehan said. “Should it do the same for diesel? Australia’s economy runs on diesel.”
The National Farmers Federation and One Nation have called on the government to ration fuel supplies in cities to ensure regional areas continue to have access.
Bowen ruled out adjusting the fuel tax and said the government was not considering fuel rationing but had federal and state powers to do so.
“What we’re doing is trying to increase supply for everyone,” he said.
Australia held more than minimum reserves of around 3 billion liters of diesel and 1.5 billion liters of gasoline in early March. If companies release all reserve fuel up to the new minimums, they would release about 800 million liters of gasoline, about two weeks’ worth, and about 700 million liters of diesel, just over a week’s worth.
