Firstly, the Albanese Government has taken a number of steps to get more fuel supplies into Queensland and regional areas. The Government will help to address fuel supply chain disruption and provide more
fuel for regional areas by releasing up to 20 per cent of the baseline Minimum Stockholding Obligation for petrol and diesel. This will allow the release of up to 762 million litres of petrol and diesel from Australia’s domestic reserves, where these can be targeted towards localised market disruption.
The Government will also allow fuel companies to hold less in storage and get more into pumps in regional areas struggling with fuel shortages. These are the stocks of fuel held in Australia, which must be maintained each week by bulk importers and refineries. In addition, to assist with getting more supply and put downwards pressure on prices, the Government will temporarily amend Australia’s fuel quality standards to allow higher sulfur levels for the next 60 days.
This will allow around 100 million litres a month of new petrol supply that would otherwise have been exported to be blended instead into Australian domestic supply at the Ampol Lytton Refinery in Brisbane. In return, Ampol Australia has committed to ensure this supply will be prioritised for Queensland and regional areas like Blair where there may be shortages, and for the wholesale spot market that supports independent distributors and harvesters. The Government has been clear – this additional supply must help the people who need it, including our farmers, fishers and regional communities.
As well as shoring up supply, the Albanese Government is taking action to help consumers get a fair go at the petrol pump, with more scrutiny and surveillance of the fuel sector, bigger penalties for misconduct, and action to shore up fuel supply.
This is about getting fairer petrol prices for Australian motorists and more fuel supply at service stations, particularly in regional areas including Blair. The Government will double penalties for false or misleading conduct and cartel behaviour (to a maximum of $100 million per offence) across the economy. On top of this, the ACCC will ramp up fuel price monitoring, reporting weekly, with a focus on unusual price spikes, and the Government has given the competition watchdog more tools, like the ability to issue on the spot fines.
Mr Neumann said that while fuel continued to arrive in Australia as expected, the shortages in rural and regional areas were real, and demand for fuel had doubled in just ten days. “That’s why the Albanese Labor Government has announced that we are releasing fuel from our reserves to places that are running short. We will release millions of litres from our national fuel reserves to regional areas that are running short.
“We’ve also temporarily changed the rules so we can keep fuel that would have otherwise been exported here in Australia. “And we’re putting petrol companies on notice, so people don’t get ripped off at the bowser. We won’t cop big corporates treating local consumers like mugs and using events in the Middle East to price gouge. “To be clear, there is no need for people in Blair to panic-buy or stockpile – just buy what you normally would so everyone gets their fair share. “We are focused on protecting our fuel supply and keeping more of what we make here for Australians,” Mr Neumann said.
