Australia Frees Up Fuel Reserves Amid Escalating Middle East Crisis
The Albanese government has taken decisive action to release millions of litres of diesel and petrol from national stockpiles, as the escalating crisis in the Middle East drives global oil prices above $US100 per barrel. Energy Minister Chris Bowen announced the move on Friday, describing it as a sensible and well-calibrated response to uncertain international circumstances.
Government Denies Fuel Shortage Despite Stockpile Release
Despite freeing up reserves, the government maintains that Australia is not facing a fuel shortage. Minister Bowen emphasised that minimum stock obligations have been adjusted, with diesel reduced from 2.7 billion litres to 2.2 billion litres and petrol from 1 billion litres to 700 million litres. This will enable fuel companies to more flexibly manage their supply chain, he stated, noting that the fuel will not be released immediately but kept for future needs if necessary.
When questioned repeatedly about the risk of running out of fuel, Bowen acknowledged the uncertainty but dismissed inflammatory language, asserting that Australia is nowhere near such a scenario. Fellow cabinet minister Mark Butler echoed this sentiment, highlighting that Australia has more fuel on hand than at any time in the last 15 years and has been preparing for such situations for years.
Opposition Criticises Government Response
Opposition Leader Angus Taylor, a former energy minister, accused Minister Bowen of being asleep at the wheel and failing to acknowledge the crisis promptly. He criticised the government for delays in addressing supply issues and ensuring fuel reaches customers. Opposition energy spokesman Dan Tehan also called for an explanation of the government's response, particularly in light of reports that China has ordered refineries to halt exports to Australia, potentially cutting critical jet fuel stocks.
Reports of Export Cuts and Hoarding Concerns
Further doubts over supply have emerged with reports that Chinese authorities have instructed refineries to stop exports to Australia, a move that could impact jet fuel imports, as Australia relies heavily on overseas sources, with China accounting for 32% of imports in 2025. Asia Pacific oil pricing chief Aldric Chew cited emails from Chinese authorities, though no public announcement has been made.
Minister Bowen also lashed out at un-Australian individuals hoarding fuel and selling it online at inflated prices, urging Australians to buy only what they need. He condemned such practices as dangerous and irresponsible, noting instances of jerry cans being sold on platforms like Facebook Marketplace.
Fuel Price Surges and Regulatory Scrutiny
Fuel prices have skyrocketed across Australia, with diesel reaching as high as $2.80 per litre in parts of Perth and regular unleaded averaging $2.26 per litre in metropolitan areas. The Australian Competition and Consumer Commission (ACCC) has expressed concern about rapid price movements at the bowser, calling on retailers to justify their pricing to consumers and businesses.
As the situation unfolds, the government faces mounting pressure to ensure stable fuel supplies while navigating global uncertainties and domestic criticisms.
