The Government has said Australia’s fuel supply is “locked in... well into May”.
At a press conference on Tuesday, Energy Minister Chris Bowen said fuel companies had told him over the weekend that they have secured “contractual obligations” to deliver fuel to Australia.
Currently, Australia is at the second level of a four-stage National Fuel Security Plan. The next stage could see Aussies being asked to limit their use.
Here’s what to know.
Context
After the U.S. and Israel struck Iran, it closed the Strait of Hormuz.
The Strait normally sees as much as a quarter of the world’s oil and gas supply every day, travelling from the Middle East to refineries around the world.
Without access to the Strait, ships must travel further to bring oil to the rest of the world, including the Asian countries which refine most of the oil Australia buys.
The disruption to the supply chain has driven up prices and sparked panic-buying.
Level 1
In response to the disruptions, the Government announced a four-level plan last month.
Level 1: ‘Plan and Prepare’: Normal operations – fuel is coming to Australia as usual, and there are no major issues in buying petrol and diesel.
Australia moved out of this stage when prices spiked. Servos began struggling to maintain supply, especially in regional and remote areas.
Right now, 3% of stations across the country have run dry.
Level 2:
Level 2: Keeping Australia Moving’ (where we are now).
International fuel deliveries are still arriving as expected, but domestic supply disruptions are beginning to show.
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In this phase, the Government is taking steps to build up supply.
There are no mandatory rules yet, but Australians are being urged to be mindful of fuel usage, with advice like: “Only buy the fuel you need”.
Level 3
Level 3: ‘Take Targeted Action’
At this stage, supply disruptions will have lasted long enough that more measures are needed to ensure fuel goes “where it’s needed most.”
Australians would be strongly encouraged to take further voluntary steps to reduce fuel use, though the plan doesn’t include any specifics.
The Government would also consider releasing additional fuel from its reserves.
Level 4
Level 4: ‘Protecting Critical Services For All Australians’
This stage would see the Government “making sure” fuel is available for emergency services, healthcare, public transport, and essential utilities.
All levels of government would coordinate on how fuel is “allocated fairly and effectively” across the country.
The Government would be in talks with other countries on how to secure further supply.
What now?
As of Tuesday, Australia has 39 days of petrol, 29 days of diesel, and 30 days of jet fuel in reserve.
In a press conference on Tuesday, Federal Energy Minister Chris Bowen said domestic fuel supply is expected to remain stable “well into May,” provided deliveries continue without disruption.
In terms of escalating the plan, the Government says Level 3 and Level 4 remain under consideration, and could be changed depending on how conditions develop.
