Motoring group puts brakes on city fuel ration push
Fuel rationing to supply areas in Australia’s major cities would cause unnecessary economic and social problems, the top automotive body says.
Iran closed the Strait of Hormuz, one of the world’s most important oil corridors, after the attack by US and Israeli forces.
Conflicts in the Middle East have increased oil prices, causing unleaded petrol prices in Australia to rise above $2.20 per litre, and diesel prices to over $2.60 per litre.
Fuel transport companies are backing One Nation MP Barnaby Joyce’s proposal to reserve fuel for farmers and regional areas as the Iran war continues.
Mr Joyce argues this will ensure supermarket shelves remain stocked and other important industries continue to operate.
Westlink Petroleum general manager Danny Kreutzer, whose Queensland-based company carries fuel to 500 businesses, said the fuel should already be earmarked for the regions.
But NRMA spokesman Peter Khoury said the organization did not support the proposal.
“There will be an economic and social connectivity impact, and we believe it is unnecessary,” he said.
“Fuel supplies have continued throughout this war and we urge Australians not to panic and stockpile, particularly diesel.”
Mr Joyce said Australia should be part of the global effort to end the Iran blockade, as US President Donald Trump called on countries to step up.
“If you’re one of the beneficiaries of the solution, you should do something about it,” he told ABC’s Insiders.
Mr Khoury said there were reports of people in some places buying four times the amount of fuel normally sold.
“As Australians stockpile fuel in jerrycans at home, this behavior will inevitably lead to shortages,” he said.
“If this behavior stops, we will go a long way to stabilizing the situation.”
On Friday, the federal government announced it would release up to 762 million liters of gasoline and diesel from companies’ emergency reserves to address shortages.
Energy Minister Chris Bowen has repeatedly reassured Australia has enough fuel and said the shortage was due to people hoarding.
He also rejected calls to introduce fuel rationing in metropolitan areas.
Finance Minister Jim Chalmers said there was plenty of fuel in the country.
“We have large stocks of fuel, whether it’s petrol, diesel, jet fuel, and we’re working around the clock to make sure Australia doesn’t run out, we certainly don’t expect that,” he told Sky News on Sunday.
Labor also relaxed fuel quality requirements; This means high-sulfur oil usually reserved for export could be sold in Australia to meet growing demand.
National Leader Matt Canavan said this was a “little mercy” for farmers and businesses, even though there was plenty of fuel in Australia.
“When they go to the petrol station or call their contractor and there’s no fuel left, they face a supply crisis,” he told Sky News.
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