Australia is considering a range of measures to address ongoing oil supply concerns, including potential restrictions on car use, speed limits, and increased work-from-home incentives, following recommendations from the International Energy Agency. The Albanese government is facing mounting pressure to find both short- and long-term solutions as fuel supplies tighten across the nation.
Government Responses and Proposed Solutions
Matt Canavan has called for increased domestic oil drilling, specifically in the Great Australian Bight, while Andrew Hastie has advocated for “reindustrialisation” of Australia’s oil extraction and refining capabilities. The Greens and crossbench members have expressed support for a potential tax on gas exports from large fossil fuel companies.
State governments are reportedly discussing potential rationing plans, though politicians state this is not currently being contemplated. The federal government is also exploring ways to leverage relationships with countries that purchase Australian resources to secure future oil supplies.
Legislative and Regulatory Actions
Labor is pushing for legislative changes to grant the Australian Competition and Consumer Commission (ACCC) greater powers and increased penalties to combat fuel price gouging. Legislation to double the ACCC’s maximum penalty for misleading conduct to $100 million is expected to be introduced this fortnight.
Energy Minister Chris Bowen initially downplayed reports of potential disruptions to oil supplies from Malaysia, but later acknowledged that six shipments to Australia had been cancelled this month from a combination of countries, including Malaysia, though replacement supplies are being arranged. He also noted an increase in onshore petrol supplies despite rising demand and prices.
Longer-Term Strategies and International Collaboration
The government is considering how Australia’s gas exports could be used to ensure a continued supply of oil and petrochemicals. Resources Minister Madeleine King has discussed “energy interdependence” with Japan, South Korea, and Singapore, expressing confidence in continued supplies.
The International Energy Agency’s executive director, Fatih Birol, is scheduled to address the National Press Club on Monday, following his agency’s suggestion that Australia could reduce air travel, car trips, and office attendance.
Broader Global Context
Several Asian countries are already implementing measures such as four-day work weeks and early school holidays in response to the global energy situation. ACCC boss Gina Cass-Gottlieb has likened the current oil squeeze to the COVID-19 pandemic.
European Commission President Ursula von der Leyen is visiting Australia this week, with an expected resolution to the Australia-EU free trade agreement and the likely signing of a defence pact. She is also scheduled to address the Australian Parliament, marking the first time a visiting female world leader has addressed the House of Representatives.
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