WA government to use emergency powers to force fuel companies to reveal supply chain information

The Western Australian government will invoke emergency powers to compel fuel companies to disclose supply chain information in an effort to maintain fuel availability throughout the state.

Fuel Supply Chain Transparency

The government initially requested companies to voluntarily provide this data following disruptions to Australia’s fuel supply caused by the conflict in the Middle East, but Energy Minister Amber-Jade Sanderson stated that only three of the six major suppliers complied.

Sanderson said the government requires information regarding fuel volumes, distribution points, and the frequency of distribution.

“It will give us visibility in the future. This is an important part of preparing us for further shocks or further challenges in the supply chain,”

she said.

The emergency powers will allow the government to quickly allocate fuel to areas of greatest need, particularly in regional Western Australia. Sanderson described the measure as “sensible and targeted,” adding that it would provide greater visibility over supply chains.

Supply challenges are most acute in the agricultural and mining regions, according to Sanderson. Fuel suppliers that do not comply face penalties of up to $100,000 per day for corporations and $10,000 per day for individuals.

1972 Law to be Utilized

Premier Roger Cook explained that the emergency powers are being enacted under the Fuel, Energy and Power Resources Act 1972, distinguishing this action from the “state of emergency” orders issued during the COVID-19 pandemic.

Cook emphasized that the focus will be on transparency within fuel supply chains, rather than directing individual behaviors. Last week, he wrote to major fuel suppliers requesting details on stock levels and plans for prioritizing fuel delivery to regional, agricultural, and maritime consumers in Western Australia. He also requested information on any changes in fuel supply to wholesale spot markets.

Sanderson noted that despite a significant increase in fuel volume entering the market, this has not translated into increased supply in regional Western Australia. “There is still a question around where a portion of that fuel has gone and it is not clear who has got it, and how we get it to where it needs to go,” she said.

Once the state government has improved oversight of fuel location, it can then direct supplies to areas of greater need. The government has also requested wholesalers to address extreme stockpiling, citing an instance where an individual over-drew 1,600 percent of their normal supply, impacting the Goldfields-Esperance region.

The announcement was made two hours before Prime Minister Anthony Albanese was scheduled to deliver a national address regarding the intensifying local impact of the Iran conflict. The orders will take effect on Thursday and will be tabled in WA’s Parliament on April 14.