Premier Roger Cook has reassured Western Australians that the state is well-positioned to navigate the ongoing fuel crisis, with sufficient petrol and diesel supplies secured until at least June. Speaking on Sunday, Mr Cook highlighted that WA now holds more fuel than it did before the commencement of the US war with Iran on February 28.
“We’re in a good position, much better than many countries around the world and we are now at the point where we can look towards mid-to-late June in terms of confidence around fuel supplies,” Mr Cook stated.
Federal Energy Minister Chris Bowen on Saturday confirmed that 56 ships are currently en route to Australia, carrying essential fuel supplies. According to Mr Bowen, these shipments will provide the nation with 43 days’ worth of petrol, 33 days’ worth of diesel, and 28 days’ worth of jet fuel.
“The 56 ships are on their way to Australia as we speak. They will land across the normal range of ports, from North Queensland, going through Sydney, Kwinana in Western Australia,” Mr Bowen said.
The ongoing Middle East conflict continues to disrupt global fuel supplies, with oil tankers unable to transit the Strait of Hormuz. Australia, which relies on imports for 90 per cent of its refined fuel, has been forced to implement contingency measures.
Mr Cook acknowledged that WA cannot afford to be complacent. “We need to continue to make sure we work to maintain that confidence in our supplies,” he said.
Mr Bowen also revealed that 4 billion litres of fuel have been locked in and contracted for delivery over the next four weeks. This includes 2 billion litres of diesel, 577 million litres of petrol, 516 million litres of jet fuel, and 813 litres of crude oil.
Given Australia’s dependence on Asia and other regions for refined fuel, Prime Minister Anthony Albanese has encouraged companies like Ampol to secure additional supplies, with the Commonwealth underwriting purchases through Export Finance Australia. Mr Bowen noted that this initiative has resulted in an extra 450 million litres of diesel and 100 million litres of jet fuel, beyond normal supply levels.
Three new cargo ships are headed to Perth, Brisbane, and Darwin, in addition to eight previously announced shipments in partnership with BP Australia, Ampol, and Viva Energy.
Federal Opposition Leader Angus Taylor has argued that Australia needs to increase its baseline stockholding levels from 30 to 60 days. The Coalition has also committed to establishing an $800 million Australian Fuel Security Facility to boost storage capacity.
Mr Cook emphasised the critical importance of fuel for WA, particularly diesel, which powers the state’s resource and transport industries. “Western Australia is one of the most dependent states when it comes to diesel supplies. It’s important for our resource industry, our transport industry. We are the biggest state in the country, and we use it for power generation in our remote communities. So, our reliance on diesel is much heavier than other states,” he said.
As reported by The Sunday Times, the Cook Government has decided to create its own emergency diesel stockpiles by purchasing fuel from companies. Twelve million litres of fuel have been earmarked for stockpiles across the state.
“We will have very shortly stockpiles in Wyndham, Geraldton, Kwinana, Esperance and Albany, which means we’re in a position to deploy fuel in a strategic way if we get acute and very localised shortages,” Mr Cook explained.
Mr Bowen warned that even after the conflict ends, the after-effects would persist. “As soon as it’s resolved the world economy can get back to more normal levels. It won’t happen overnight. Even if the Straits of Hormuz opened tonight there would still be impacts on supply chains - not just fuel, but for other things as well,” he said.
Energy and Decarbonisation Minister Amber-Jade Sanderson told The Sunday Times that her government is “working around the clock to ensure there is enough fuel for Western Australians.” She continues to chair the Fuel Industry Group, which meets weekly to monitor the situation and respond to emerging issues.
“We have growing confidence in our fuel supply until the end of May and are continuing to work to firm up June,” Ms Sanderson said. She also noted that alternative supply chains are opening up, with crude oil from countries outside the Middle East making its way to refineries bound for WA.
“Remember buy only what you need, no more, no less. There is another 100 million litres of fuel coming to Western Australia secured by the Commonwealth Government. This includes 50 million litres of diesel and 50 million litres of jet fuel, both due to arrive in Kwinana. This is crucial to keep FIFO, agriculture, mining and transport sectors moving,” Ms Sanderson added.
Ms Sanderson confirmed that the government continues to monitor FuelWatch to ensure retailers are reporting prices and fuel supplies. Since the beginning of the Middle East conflict, more than 80 fines have been issued to non-compliant retailers.
“We will not hesitate to act if retailers are discovered to be taking customers for a ride,” she warned.
