How Australia can protect against future fuel shocks
Transport and logistics experts say disruptions to global oil supplies are a long overdue lesson for Australia to prioritize greater self-reliance and energy independence in the future.
Driven by continued strong demand, fuel reserves across the country reached 39 days for gasoline, 29 days for diesel and 30 days for jet fuel.
The number of service stations running out of gasoline and diesel has fallen; 312 of 8000 stations did not have diesel.
Energy Secretary Chris Bowen said more than 50 ships were on the way carrying fuel from Asian refineries, the United States, Mexico and elsewhere.
He said new orders have more than replaced the canceled ones and fuel companies are confident about the 3.7 billion liters of supply booked for April and May.
The government should be commended for increasing fuel stocks, but the Australian Logistics Council said it also needed to look at the sustainability, resilience and productivity of the supply chain.
Chief executive Hermione Parsons told AAP: “This is the most serious global supply chain disruption in energy ever experienced and we need to see it in the context of Australia’s future.”
Australia is a small market at the terminus of major trade routes, and during COVID ships stopped arriving after being diverted to more lucrative trade routes.
Dr Parsons said the government needed to build sovereign capacity.
This needed to go beyond replacing a single form of energy, such as imported crude oil, with domestic production.
Renewable diesel, fleet electrification and greater use of freight rail should also be included in the mix.
Australia is underutilizing freight rail, which uses five times less diesel and has fewer carbon emissions.
The agricultural sector’s ability to produce feedstocks for renewable diesel could help. But there needs to be more refineries.
Matt Barrie, boss of Loadshift, Australia’s largest online freight marketplace, was skeptical of the federal government’s assurances, saying the maths didn’t make sense.
He said 53 ships carrying 3.7 billion liters of fuel on the road would not cover the 4.5 billion liters Australia burns in a month.
“These ships don’t even cover four weeks. Has anyone asked what will happen in May?” Mr. Barrie said.
As Australians celebrate Easter, Mr Bowen encouraged people to stick to holiday plans but urged them not to buy more fuel than they need.
He acknowledged Bowser’s pain as the Iranian war continued.
“Even if it ends today, there are impacts on the supply chain that will be with us for weeks and months to come,” Mr Bowen said.
NRMA spokesman Peter Khoury said oil prices would continue to be heavily affected by global events but reassured Australians there would be enough fuel for those heading out over the long weekend.
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