Australia’s fuel stocks remain at “normal levels”, with just 2 per cent of service stations currently without diesel, and the forward program for shipping tanker deliveries is strong as global trade flows recalibrate, according to a Transport Industry Briefing hosted Wednesday morning by Minister for Infrastructure, Transport, Regional Development and Local Government, Catherine King.
Supply
►The Minister told the meeting the Government continues to work with trade partners such as Japan, South Korea, Malaysia, Brunei and Singapore and other allies to find and confirm additional sources of fuel. A binding protocol has been established with Singapore. Prime Minister Anthony Albanese and Foreign Minister Penny Wong are travelling to Brunei and Malaysia to discuss fertilizer and diesel. Wong is travelling separately for meetings with counterparts in Singapore.
► About 1 per cent of the nation’s 8,300 fuel stations have reported no stock and 4.5 per cent are reporting no stock in one or more fuel grades. Only 2 per cent of stations are currently without diesel. Local demand has normalised marginally, but regional shortages are still concerning.
► The forward program for shipping tanker deliveries remains strong as global trade flows recalibrate, with more ships out of the US Gulf and even places like Sudan. It’s a four-six week journey to Australia so industry should have confidence well into May. However, it is predicted the market will tighten.
► Minister King was keen to remind industry the Minimum Stockholding Obligation (MSO) holdings are additional to normal supply currently (and coming) into the market, so the reported 31 days of diesel supply is on top of available stocks. As at April 7, there were 38 days of petrol supply held under the MSO, 31 days of diesel and 28 days of jet fuel.
► On Monday, the Government launched the National Fuel Security Campaign campaign, which is aimed at demand management and as a point of reliable communication across Government.
Prices
► Locally, price relief is being experienced as the Fuel Excise cut and the Road User Charge pause for heavy vehicles rolls through the supply chain. Additionally, state and territory governments are forgoing GST as well, further reducing prices at the bowser.
► Overall, petrol prices have fallen slightly while diesel prices remain high. See here for the latest pricing data from the Australian Institute of Petroleum
Industry Support
► On April 14, the Fair Work Commission issued a notice of intent to make a Road Transport Contractual Chain Order. The FWC is asking for submissions from workers, businesses and other stakeholders about the draft order (which would take effect on April 20) by 12:00pm (AEST) on Friday, April 17. The amendment would help transport operators to share the burden of increased fuel prices with supply chain partners.
► The Treasurer has announced relief from the ATO for anyone who cannot meet tax obligations as a result of the conflict – including a fuel response payment plan that provides temporary relief for businesses unable to meet their tax obligations due to fuel supply issues.
► The Prime Minister’s announcement for zero-interest loans for fuel and fertilizer suppliers, as well as transport companies, to help them maintain operations is currently being worked on through the National Reconstruction Fund and further details will be released shortly on how to apply. You can register your interest here. Urgent discussions are also underway between the ATA and the Government on concessional loans for transport operators.
► Some state and territories – including SA, NSW and WA – have started to increase access and opening up the network to higher productivity vehicles to boost productivity and reduce fuel usage and costs.