The Albanese government is urging motorists not to panic buy petrol as long queues form at service stations amid concerns over potential price spikes. The increased demand is being driven by forecasts of a supply crunch linked to disruptions in Middle Eastern supply chains.
Petrol Supply Concerns Rise
Energy Minister Chris Bowen stated, “Australia enters this period of great instability very well prepared.” He urged the public to only purchase petrol when needed, stating, “There is no need to rush to the service station and fill up.”
The global benchmark for oil has increased approximately 10 percent since recent strikes on Iran, rising from $US72 to $US79 a barrel. Economists suggest that a $US10-a-barrel increase could add around 10¢ a litre to petrol prices in Australia.
Bowen indicated that energy companies and refining companies have no current plans to raise petrol prices unless the increased oil price impacts Australia. Treasurer Jim Chalmers has requested the consumer watchdog to monitor service stations for any instances of price gouging.
Australia currently holds domestic fuel reserves exceeding international standards, with over 36 days’ worth of petrol, 34 days’ worth of diesel, and 32 days’ worth of jet fuel in storage. Bowen affirmed that there is no immediate prospect of fuel shortages in Australia due to the ongoing conflict.
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