Australian remains at Level 2 of the National Fuel Security Plan (‘keeping Australia moving’), with fuel stocks at “normal” levels and the forward program for shipping tanker deliveries remaining strong, according to a Transport Industry Briefing hosted this morning by Minister for Infrastructure, Transport, Regional Development and Local Government, Catherine King.
Subsequent to this morning’s meeting, US President Donald Trump announced he had agreed to a two-week suspension of bombing of Iran subject to the immediate reopening of the Strait of Hormuz, ABC reports.
Supply
> Australia remains at Level 2 of the National Fuel Security Plan, but preparatory work is being done if that needs to be escalated to higher levels (stage three ‘taking targeted action’ and stage four ‘protecting critical services for all Australians’.)
> Fuel stocks are at “normal” levels and the government continues to work with trade partners and allies to find additional sources of fuel. Countries such as Japan, South Korea and Singapore continue to express support for their supply arrangements with Australia.
> Approximately five per cent of the nation’s 8,300 petrol stations are experiencing some fuel shortages, but only 2.5 per cent of stations are currently without diesel. Local demand has normalised slightly and increased supply has helped reduce the outages and supply disruptions.
> The forward program for shipping tanker deliveries remains strong as global trade flows recalibrate, with more ships coming 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.
> Minister King was keen to remind industry that the MSO holdings is additional to normal supply, so the 29 days of diesel reported here is additional to any other supply.
> Australia’s two local refineries operate on a three-month supply cycle and are operating as normal.
Price
> Locally, price relief is being experienced as the fuel excise cut and the road user charge pause for heavy vehicles roll through the supply chain. Additionally, state governments are forgoing GST as well further reducing cost at the bowser.
> Globally, pricing is volatile. Petrol overnight was at US$143/barrel and this volatility is impacting diesel harder, with overnight pricing at US$249/barrel.
Industry Support
> Consultation ends today for the Proposed Ministerial Determination to allow a road transport contractual chain order (MS2026/1) to be deemed an ‘emergency application’ for the purposes of Chapter 3B of the Fair Work Act allowing a decision to be made without the usual six-month timeframe. The amendment would help transport operators to share the burden of increased fuel prices with the supply chain and not have to unfairly bear the brunt.
> Yesterday, the Treasurer 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 PM’s announcement at the National Press Club on April 2 for $1 billion in 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.
> Some state and territories have started to increase access and opening up the network to higher productivity vehicles – led by South Australia’s announcement this week that it was fast-tracking major access reforms. Hopefully this will continue nationwide.