Australia running empty of fuel, or needing to ration it, has not been ruled out by the Federal Government – but that doesn't mean it will happen, either.
The Australian Government has left the door ajar to rationing fuel should supplies drop to a critical level, amid the ongoing conflict in the Middle East.
But, for now, it remains a distant possibility, as fuel is continuing to arrive in Australia at the "same" level as prior to the conflict, the Federal Government claims, its latest data reporting 37 days of petrol and 30 days of diesel stored in the country.
The interviews come as diesel shortages hit rural areas – blamed on a surge in demand – and the Federal Government enacts a range of measures to increase domestic fuel supply, including temporarily winding back fuel quality standards and releasing a portion of fuel from Australia’s reserves.
Speaking on ABC News this morning, Richard Marles, Deputy Prime Minister and Minister for Defence, did not rule out that the government was considering fuel rationing measures.
"Obviously, you know, this is a function of how long this conflict continues, and that's not something that I can answer in terms of what's going to happen," Marles said.
"But we are taking the measures that we're taking right now, and it is a matter of people just going about their business normally and calmly."
But when asked on Sunrise this morning if there would be any rationing "at this stage", Marles was succinct: "No."
Despite fuel supply into Australia remaining steady for now, uncertainty over the ongoing conflict in the Middle East meant Marles was unable to provide assurances on Sky News this morning that Australia wouldn’t run out of fuel in future.
"I'm just not going to speculate on the future because I don't know how long this conflict will go in the Middle East. But we will be working through this in a very prudent way," he said.
"And right now, I reiterate, the same amount of fuel is coming into the country today as was coming in prior to this conflict starting."
David Learny, a specialist in international supply chain management and university lecturer, told ABC News Daily that high demand for fuel, combined with distribution challenges, meant that some sort of rationing system might be prudent.
"The same amount of fuel that has always come into Australia on a weekly or monthly basis is currently coming into Australia on a weekly or monthly basis. And that's true," Learny said.
"What we've got is a distribution problem and there's a demand issue as well because people are, you know, grabbing the last remaining jerry can from Bunnings and going up and filling up extra.
".... When people are draining the supplies by having this peak in demand, it does make the problem worse for everybody else. A prioritisation system is a fairly simple thing that could and should be done, in my view.
"So, for example, let's prioritise emergency services first. And then after that, let's give some priority to farmers and regional areas."
But Leaney warned any sort of system, such as capping the number of litres individuals could purchase, would have to be approached carefully so as not to cause alarm and instigate further panic buying.
Fuel prices, not just supply, have been a point of contention in recent weeks, as the Federal Government and the Australian Competition and Consumer Commission (ACCC) have repeatedly warned fuel retailers not to price-gouge motorists.
The ACCC announced last week it would be publishing weekly reports on fuel prices around the country, with the first report last week highlighting a disconnect between wholesale fuel prices and the price being charged at bowsers, indicating Australian motorists were being overcharged during this crisis.
The consumer body has published a number of graphs that indicate that skyrocketing fuel prices were increasing disproportionately to how prices were increasing for fuel retailers.
It stated that it typically takes seven days for price rises in wholesale fuel prices to impact fuel prices at the bowser, but in recent weeks, this rise was being passed on immediately.
David Learney echoed the ACCC's view that motorists were being overcharged at the bowsers.
"The more expensive fuel that we're making its way into those storage tanks in a month's time is definitely going to cost the fuel companies more. The fuel that they've got in their storage tanks right now that they're selling at the bowser, they bought a month ago, quite cheap prices," Learney said.
"So this is a case of supply and demand, free market economy. The responsibility of the fuel companies is not to look after the public. The responsibility of fuel companies is to provide a return on investment to their shareholders,
"And they're doing that, yes, to make more money, but also to dampen down some of the demand and to deal with some of the panic buying behaviour. But there's still a case where is it fair that the prices have gone up that much, that quickly, because there's no way their costs have gone up that quickly."
The ACCC’s next fuel report comes out this Friday, and while last week's inaugural report included only capital cities, this next report will also include a wide range of regional areas.
Max is the News Publishing Coordinator for Drive. He enjoys creating engaging digital content, including videos, podcasts, interactive maps, and graphs. Prior to Drive, he studied at Monash University and gained experience working for various publications. He grew up playing Burnout 3: Takedown on the PS2 and was disappointed when real life car races didn’t have the same physics.
