Fears of insufficient supply of diesel and gasoline have led to a surge in fuel demand across Australia, leading to at least one fuel supplier to begin rationing sales to non-contracted buyers and sparking fresh calls for Canberra to intervene in fuel markets.
Some independent wholesalers have struggled to obtain extra volumes due to surging demand, especially in regional and rural areas, as suppliers prioritise meeting the needs of contracted customers, a source familiar with the matter told Argus.
One firm sought supply from other companies with larger market share, but all have been hit with the same wave of buying and have moved to ensure they meet the needs of contracted customers, leaving insufficient volumes available for others.
Fuel supply chains are being tested by consumer behaviour during the ongoing US-Iran war, Australia's Labor federal energy minister Chris Bowen said on 9 March, responding to concerns about potential fuel rationing.
But the government believes every single contract is being honoured, Bowen said, citing discussions with importers and distributors, which he said would continue. He added that the nation's fuel security was in a good position. Nonetheless, diesel supply is reportedly tightening in regional areas, where it is heavily used by the agricultural sector.
"I do know that there is some supply chain issues which is really being caused by a spike in demand of people seeking to buy extra diesel," Bowen said. The minister said he will meet with industry representatives tomorrow to ensure every possible action is being taken to help Australia through uncertain times. But it is impossible to say how long before the war becomes a problem for Australia's fuel supply, Bowen added.
Regional shortages
Some retailers are running low on supply because Australians are buying fuel at far higher rates than usual, with some reportedly stockpiling fuel at home, a spokesperson for motorists' lobby the National Roads and Motorists' Association said today. The group urged Australians to stop panic buying.
One small Queensland-based distributor Bartranz Petroleum said it had been allocated just 10pc of its usual daily liftings from Brisbane due to hoarders depleting stocks at retail locations, despite no interruption to refined product imports from Singapore — the largest source of gasoline imports to Australia.
The conservative Coalition opposition is urging the government to use powers under the Petroleum and Other Fuels Reporting Act to identify customers at risk of fuel shortages – especially farmers, manufacturers and the transport industry – to ensure supply gaps are addressed as a priority.
Terminal gate prices (TGPs) for the wholesale market in Australia's state capitals have surged since the war in Middle East began (see graph), while retail prices have also jumped higher. Australian fuel suppliers have been referred to the Australian Competition and Consumer Commission for increasing fuel prices at retail sites across the country, above what is expected from higher international prices.
