Australia’s Fuel Supply Rises Above Pre-War Levels as Albanese Avoids Excise Decision
Synopsis
Prime Minister Anthony Albanese says Australia’s fuel supply is now stronger than before the Iran conflict began, with petrol, diesel and jet fuel reserves all increasing nationwide. However, the federal government is still refusing to confirm whether temporary fuel excise cuts will continue after June 30. Petrol prices have almost returned to pre-war levels, although diesel remains significantly more expensive. The fuel relief measures, introduced in April to ease pressure from rising global oil prices, have already cost taxpayers $2.55 billion as uncertainty around Middle East tensions continues.
Prime Minister Anthony Albanese has declared Australia has more fuel onshore than before the Iran war began. However, the government is still denying it will extend cuts to its temporary fuel excise beyond June 30.
Key Highlights
- Fuel imports over the next few months are expected to build reserves.
- According to the government, petrol, diesel, and Jet Fuel are in a favourable supply situation.
- This raised the prospect of retaining the fuel excise cuts, which are still planned to finish on June 30.
- Petrol prices have nearly gone back to pre-February levels.
- Even with this week's falls, diesel prices remain considerably higher.
The Middle East shock has receded, with fuel supply bouncing back
Prime Minister Anthony Albanese said Australia is well-positioned, with petrol, diesel, and jet fuel well above pre-Iran conflict levels. In a speech on Saturday, Albanese said that demand for fuel shot up leading into Easter before easing off again, allowing supply levels around the country to stabilise. In a statement on Tuesday, Energy Minister Chris Bowen said Australia had 44 days of petrol supply, 36 days of diesel supply, and 35 days of jet fuel supply. He also said total fuel inventories in the country stood at 6.2 billion litres, the highest level on record. While uncertainty exists in the Middle East, Albanese said Australia is at level two under the national fuel security plan.
No Decision Yet: Government Will Continue to Suspend Fuel Excise
While there has been some progress in recovering fuel supplies, the federal government has still not given a straight answer on whether temporary cuts to fuel excise will stay in place beyond June 30. The cut in excise duty was announced from April 1 after the international oil prices soared due to the breakout of a conflict in the Middle East. It temporarily reduced the fuel excise of 26.3 cents per litre for petrol and diesel, while also suspending the heavy vehicle road user charge to zero to assist truck drivers impacted by rising operational costs.
The package itself would have cost taxpayers $2.55 billion, the government had previously said. Albanese, when asked on Saturday if the relief would continue, said it would depend on assessing the situation nearer to July 1.
Petrol Price Slumps, but Diesel Stays on the Higher Side
National prices at the pump have begun to fall after months of soaring costs in line with global supply worries. By Saturday morning, average pump prices for unleaded petrol had already dropped to 186.4 cents per litre according to ABC fuel monitoring data, almost on par with the 181.5 cents average recorded on February 28 as conflict simmered in Iran.
Diesel prices, however, are much higher and still about 50 cents above pre-war levels despite a continued three-week decline. Accommodating supply levels, the government says, had led to stability in the market, but uncertainties over Middle East tensions were still contributing to uncertainty
FAQs
- Will fuel prices go up in Australia?
If global oil markets crash or the cut to the fuel excise (set to end in July) is removed again results will increase once more.
- Is the fuel exercise ending?
Yes, the fuel excise is due on the 30th of June.
- Why are diesel rates so high?
Global supply pressures are one of the reasons why diesel prices stay high.
- What did Anthony Albanese say about fuel supply?
Australia has a greater supply of petrol, diesel and jet fuel than before the war broke out in February, he said.
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