States warn piecemeal fuel rationing would trigger COVID-era confusion
Provinces insist that the Albanian government take a national leadership role in managing the possibility of emergency measures to reduce oil demand, fearing that a piecemeal state-by-province approach will create confusion and anxiety in the Covid era.
Prime Minister Anthony Albanese gave a speech on Monday to warn of the prolonged economic hit caused by the blockage of the Strait of Hormuz, while NSW Premier Chris Minns and Victorian Premier Jacinta Allan raised the possibility of extraordinary interventions to protect oil if shipments were halted, but both insisted such measures were not yet needed.
Several state energy ministers, including Labor government ministers, are telling Energy Minister Chris Bowen that the federal government should take a leading role in co-ordinating Australia’s response to the oil shock, which the International Energy Agency has described as the worst crisis to hit the global fuel market.
Two sources familiar with Friday’s meeting of energy ministers but not authorized to speak publicly about the matter said states were concerned that fuel companies would discriminate against states that introduced individual measures such as price caps or fuel rationing.
States would prefer the Commonwealth launch a national debate about what Australians might need to do in the event of fuel shortages, even if the advice is voluntary and light-touch.
Albanese responded to a question about fuel rationing on Saturday, two days after convening the national cabinet and appointing a fuel co-ordinator: “It’s a decision of the state and territory government, so it’s not a question for me.”
Most states, including NSW and Victoria, have the power to ration and effectively undertake the supply and distribution of fuel under their legislation. But state leaders emphasized similar federal powers in private and public domains under the Liquid Fuel Emergency Act, which Bowen said were never implemented.
“Not through the first two Gulf Wars or through Covid-19. This is not designed to be taken lightly,” Bowen said on the ABC on Sunday. “I need to be satisfied that there is a real deficiency and that the powers under this law are useful.”
A source involved in planning between the state and federal governments said although states had special powers, it was up to the Commonwealth to use that status to deliver a coherent national message at a time when Australians across the country were worried about the future.
“States went their separate ways during COVID and this should not happen again,” the source said.
It is common for states to try to transfer responsibility to the Commonwealth, but the states’ frustration is increasing scrutiny on the Albanian government and the urgency of its response.
In his address to the mining industry on Monday night, Albanese will appeal to Australians’ “progressive patriotism” to avoid fuel hoarding.
“Our government will continue to look at every practical option to protect Australia from the worst of this international crisis,” he said.
“We demonstrate our belief in the practicality and patriotism of Australians.”
Victoria said on Monday the Commonwealth should lead the response.
“If there are to be additional measures that need to be taken to manage supply… my view is that is something that needs to be coordinated through national cabinet,” Allan said. “There will need to be a nationally coordinated approach here.”
In NSW, Minns said his government would “of course take emergency action if necessary, but those measures have an impact on the economy”.
“We want to make sure we only do this when we absolutely have to,” he said.
The statement issued at the meeting of energy ministers on Friday said ministers agreed that “there are shared responsibilities and working together to protect fuel security by anticipating risks will be critical.”
Bowen released figures showing 37 of 2444 service stations in NSW had dried up, 109 in Victoria and 47 in Queensland.
While ministers have said working from home could be a logical step for individuals, the Albanian government has largely ignored questions about measures suggested by the International Energy Agency last Friday, such as reducing flights or driving slower.
International Energy Agency Director Fatih Birol did not express concerns about Australia’s fuel reserves below international standards, a day after Bowen announced the cancellation of six of 81 oil tankers bound for Australia.
Speaking at the National Press Club in Canberra, Birol said: “I think 38 days is a solid number and I know more ships will pass through here bringing more of these and other products to market.”
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Paul Sakkal is Chief Political Correspondent. He has previously covered Victorian politics and won the Walkley award as well as the 2025 Press Gallery Journalist of the Year award. Contact him securely on Signal @paulsakkal.14.Connect with: X or email.
