Fuel crisis: plan for $40 petrol-pump limits denied
Senior government officials have distanced themselves from official advice that a $40 cap at the petrol pump could help tackle critical fuel shortages in parts of Australia.
The war in the Middle East caused oil, diesel and jet fuel prices to soar; This caused chaos for travelers as flight costs increased and some services were cancelled.
An increase in drivers’ stockpiling has led to hundreds of service stations going dry.
National fuel emergency response guidance recommends a daily transaction limit that may be set by the federal energy minister.
At current prices, the $40 limit equates to approximately 16 liters.
The document was developed in 2019 and no such limit was taken into account, ministers said on Wednesday.
“The government has no intention of imposing caps on oil consumption,” Trade Minister Don Farrell told reporters in Canberra.
The guide was obtained by former independent senator Rex Patrick under freedom of information laws.
“The government is currently using a number of approaches recommended in the guidance,” he told AAP.
“I don’t think they’re necessarily prescriptive…for example, the $40 purchase limit could be adjusted to another number,” Mr. Patrick said.
The document stated that oil rationing should be fair and transparent and also help restrict demand.
“While the ‘total transaction value’ will be fixed, the price per liter may fluctuate according to the normal functioning of the market,” the statement said.
“This will have the effect of reducing or increasing the volume of fuel sold if prices rise or fall respectively.”
It also outlines other measures the government could take, including directing the distribution of fuel to shortage areas or essential users, instructing oil companies to maintain minimum stocks, transferring fuel between states and territories, and instructing refineries to produce quantities of gasoline or diesel.
Some of these steps had already been taken in the wake of the Middle East war.
Rising oil prices also disrupt travel plans; Jetstar confirmed it was cutting flights due to rising jet fuel prices and other costs.
A spokesman said one in 10 of the budget carrier’s services in May were affected, including domestic New Zealand services and flights between Auckland and Sydney and Brisbane.
Many of the affected passengers were offered seats on Jetstar flights the same day.
The government needs to be more transparent about its response to rising fuel prices, shadow attorney general Michaelia Cash told Seven’s Sunrise programme.
“It seems like they understand that people are making this difficult, but they’re not doing anything to ease the pain,” he said.
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