Energy Minister Chris Bowen has dismissed a warning from Malaysia that crucial fuel shipments could be disrupted if the spiralling Middle East conflict is prolonged.
Australia imports around 90 per cent of its fuel, leaving it at the mercy of foreign refineries weathering the global oil crisis.
Malaysia is Australia’s third-largest supplier of refined fuels.
A Malaysian embassy spokesman told The Australian Financial Review his government would “prioritise our own needs” before looking at “whatever demand that we receive from overseas”.
“There are some other countries as well that might be able to supply to Australia, but still, everyone is having the same problem right now,” the spokesman said.
With other major suppliers cutting back exports, Australia would be hard-pressed to make up the loss.
But Mr Bowen said on Friday the embassy’s response was “a very broad statement”.
Energy Minister Chris Bowen insists Australia’s fuel supply is ‘secure’. Picture: NewsWire / John Gass
“It wasn’t any particular announcement that they were taking any particular action,” he told ABC’s Radio National.
“Malaysia produces, refines, a lot more fuel than Malaysia or Malaysians would need at any given time.
“We continue to talk to all our partners across Asia … about the flow of energy both ways … in terms of this crisis.
“At the moment … the Malaysian government has taken no action to threaten the supply of fuel to Australia and all the ships that we’ve expected to arrive have arrived.”
While Australia’s fuel shipments scheduled for March have so far arrived as planned, market watchers have warned disruptions could hit Australia in mid-late April.
South Korea, another major supplier, has capped petrol and diesel exports to safeguard its own supply, while China directed refineries to pause or scale back exports, effectively cutting 32 per cent of Australia’s jet fuel supply.
‘Very low’ number of service stations out of fuel
Mr Bowen’s comments came as Australians face record-high prices at the bowser and dozens of service stations across the country report fuel shortages.
In NSW alone, 42 stations reported that they were out of petrol while 80 said they had no diesel.
Rural and regional areas have borne the brunt but shortages have crept in on major centres, including Sydney where service stations in the city’s northwest said they were completely out.
Mr Bowen again put the problem down to a surge in demand, saying that it “spiked by 100 per cent” and that “any supply chain for any commodity is going to struggle with that”.
Fuel prices across the country are climbing oil shocks spurred by the Middle East conflict. Picture: NewsWire / Luis Enrique Ascui
“The number of service stations, or percentage of service stations, that are fully out of fuel is very low as a percentage … across the country,” he said, claiming it was in “single digits”.
“But that doesn’t mean it’s not a real crisis and real challenge for those people who are having trouble getting fuel in rural and regional areas.”
Anthony Albanese on Thursday appointed a fuel supply task force co-ordinator to work with states and territories on distribution.
It came as the consumer watchdog announced it was “urgently” investigating Ampol, BP, Mobil and Viva Energy over diesel prices in rural and regional areas.
US allies offer Hormuz help
Several countries have offered to help unblock the Strait of Hormuz after US President Donald Trump unleashed on allies, including Australia, for not joining a naval coalition to protect oil tankers.
The strait is a chokepoint between Iran’s south and Oman’s northern tip through which a fifth of the world’s oil is shipped.
The Iranian military began targeting vessels transiting the strait after the US and Israel first launched strikes late last month, effectively shutting the maritime passage and causing global oil shocks.
In a joint statement, the leaders of Canada, Japan the UK and several EU countries condemned “recent attacks by Iran on unarmed commercial vessels in the Gulf, attacks on civilian infrastructure including oil and gas installations, and the de facto closure of the Strait of Hormuz by Iranian forces”.
Iran has targeted ships trying to transit the Strait of Hormuz. Picture: Royal Thai Navy / Handout / AFP
“We express our deep concern about the escalating conflict,” they said, calling on Iran “to cease immediately its threats, laying of mines, drone and missile attacks and other attempts to block the Strait to commercial shipping” in line with international law.
“The effects of Iran’s actions will be felt by people in all parts of the world, especially the most vulnerable.
“Consistent with UNSC Resolution 2817, we emphasise that such interference with international shipping and the disruption of global energy supply chains constitute a threat to international peace and security.
“In this regard, we call for an immediate comprehensive moratorium on attacks on civilian infrastructure, including oil and gas installations.
“We express our readiness to contribute to appropriate efforts to ensure safe passage through the Strait.
“We welcome the commitment of nations who are engaging in preparatory planning.”
US President Donald Trump has threatened to ‘massively blow up the entirety’ of the world’s biggest gas field. Picture: Jim Watson / AFP
Australia has repeatedly ruled out any help.
Both sides of the war have targeted energy facilities, with Israel hitting Iranian sites in the South Pars gas field, the world’s large.
Iran shares South Pars with Qatar and responded by targeting energy sites in neighbouring Gulf countries, including Qatari installations.
The Israeli attack was against the wishes of Mr Trump, who promised no further attacks on South Pars unless Iran attacked Qatar again.
“NO MORE ATTACKS WILL BE MADE BY ISRAEL pertaining to this extremely important and valuable South Pars Field unless Iran unwisely decides to attack a very innocent, in this case, Qatar – In which instance the United States of America, with or without the consent of Israel, will massively blow up the entirety of the South Pars Gas Field at an amount of strength and power that Iran has never seen or witnessed before,” he posted on social media.
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