Fuel stocks look secure into August as price hike eases
Australia has enough fuel reserves to last almost three months, as oil prices in the bowser have fallen almost to pre-Middle East war levels.
Energy Minister Chris Bowen said on Saturday that there were 43 days worth of gasoline, 36 days worth of diesel and 30 days worth of jet fuel in stock, and billions more liters of fuel were being shipped.
“Australia is doing very, very well in the face of the ongoing tensions and challenges that every country in the world is facing around fuel supply,” he told reporters.
“All three levels are higher than the level on February 28, when Iran was first bombed.”
More than 90 ships carrying fuel arrived in May; this was about 10 more than the monthly average of 81 ships.
A further 50 are on the way, with 3.5 billion liters of fuel expected to be delivered over the next four weeks.
1.8 billion liters of this consists of diesel, 512 million liters of gasoline, 468 million liters of jet fuel and 709 million liters of crude oil.
“We also have a situation where we can say that fuel was safe throughout June and July and now into August,” Mr Bowen said.
Average oil prices in the country’s largest cities last week fell to near pre-conflict levels in Iran, but prices are expected to rise as the federal government’s temporary fuel tax cut expires at the end of the month.
The average petrol price on Wednesday was 173.30 cents per liter in Sydney, $175.60 in Melbourne and $176.20 in Brisbane, according to the Australian Competition and Consumer Commission.
On February 20, about a week before conflict escalated in the Middle East, the average price per liter was $165.20 in Sydney, $176.10 in Melbourne and $188.80 in Brisbane.
The day before the federal government temporarily halved fuel duty on March 31, the price was $257.40 in Sydney, $259.10 in Melbourne and $258.70 in Brisbane.
Diesel prices have also fallen but are still well above pre-conflict levels.
The average diesel price per liter on Wednesday was $206.70 in Sydney, $214.50 in Melbourne and $214.20 in Brisbane.
This is lower than the average prices of $321.80 in Sydney, $324.40 in Melbourne and $322.70 in Brisbane on 31 March, but higher than the average prices of $174.30 in Sydney, $178.90 in Melbourne and $179.70 in Brisbane on 20 February.
Mr Bowen confirmed that the temporary 50 per cent cut in the federal fuel tax, which reduced the tax on petrol and diesel by 26.3 cents per litre, would end as planned on June 30.
“But of course we will continue to monitor the situation and will always act in the best interests of Australians based on the evidence before us,” he said.
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