The federal government is moving to shore up Australia’s fuel supplies, proposing new powers to underwrite private fuel purchases, while the opposition pushes for an immediate tax cut, as the national fuel crisis continues to put pressure on prices and availability.
Prime Minister Anthony Albanese said the measures, to be considered by parliament on Monday, would allow the government to back private companies importing additional petrol and diesel cargoes amid ongoing global uncertainty linked to the conflict in the Middle East.
“Put simply, there is a risk of a private purchase of shiploads of fuel at higher prices because there is so much uncertainty with the war in the Middle East,” Mr Albanese said.
“This is about risk mitigation for (private companies) to add to supply and it will give suppliers the confidence to secure additional and discretionary cargoes used to service uncontracted demand, including for regional and independent fuel suppliers.”
Six of the 81 fuel cargo ships scheduled to arrive in Australia in April have cancelled, although replacements have been secured.
Mr Albanese said the government was taking steps to be “over prepared” in the face of ongoing uncertainty.
“We’re working to get more fuel to Australia but we’re also working on distribution to get it to where it needs to go, which is why we’ve ensured the fuel reserves that have been released are going to regional areas, to areas that are most in need,” he said.
Despite those assurances, fuel prices remain elevated, with the Australian Competition and Consumer Commission reporting sharp increases across both metropolitan and regional markets.
Average diesel prices in the five largest cities reached 303.5 cents per litre in the week to March 25, up 27.8 cents in a week, while regional prices climbed even higher to 307.6 cents per litre, a rise of 28.6 cents.
Unleaded petrol prices also increased, reaching 252.2 cents per litre in metropolitan areas.
The increases have been driven by global benchmark movements, with diesel prices rising around 17 per cent in a week, compared to about 9 per cent for petrol.
The ACCC said it had received more than 3,000 reports from consumers and small businesses about fuel prices in March, with concerns ranging from rapid price increases to supply shortages and rationing at service stations.
“We remain concerned about supply issues for both petrol and diesel impacting a range of locations, including capital city suburbs, regional towns and remote areas,” Deputy Chair Mick Keogh said.
Opposition Leader Angus Taylor has called for a temporary halving of the fuel excise.
The proposal has been backed by Federal Member for Page Kevin Hogan, who said families and businesses on the North Coast were being hit hard.
“Families and small businesses across our region are being hit hard by rising fuel prices, and urgent action is needed to ease the pressure,” Mr Hogan said.
“This is real cost of living relief that can be delivered straight away, a practical step that would cut around 25 cents per litre.
“People in our region rely on their cars more than most, for work, school and everyday life. When fuel goes up, everything goes up.”
“Transport costs flow through to everything – groceries, services and small business operations. This would take immediate pressure off households and help keep local businesses moving.”
The proposal would halve the 52.6 cents per litre fuel excise for three months, alongside a corresponding reduction in the heavy vehicle road user charge.
Industry groups have also backed calls for urgent support, including emergency financial assistance and temporary relief measures for transport operators.
However, the excise cut would not deliver the same benefit for all sectors.
Many primary producers and heavy industry operators already receive fuel tax credits on diesel, meaning the excise is effectively refunded and any reduction would have limited additional impact for those users.
The federal government has also granted interim authorisation to the Australian Institute of Petroleum to coordinate supply chain responses.
Mr Albanese is set to meet with state and territory leaders on Monday as part of a national cabinet response aimed at coordinating supply and distribution across the country.
North Coast Times is new! Connect with us by sending press releases to newsdesk@nctimes.com.au or enquire about advertising with us by emailing ads@nctimes.com.au.