Australia not expected to run out of fuel
Australia is not expected to face fuel shortages despite growing tensions in the Middle East, according to Treasurer Jim Chalmers.
Speaking on Sky News, Chalmers said the government has significant fuel reserves and is closely monitoring the situation as global oil markets react to the conflict involving Iran.
“We’ve got big stockpiles of fuel, whether it’s petrol or diesel or jet fuel,” he said.
“We work around the clock to make sure that Australia doesn’t run out.”
Why the war is affecting oil markets
The comments come as the conflict in the Middle East raises concerns about oil supply.
Around 20% of the world’s oil supply travels through the Strait of Hormuz, a critical shipping route connecting Gulf oil producers with global markets.
Any disruption to shipping in the area could push oil prices higher worldwide.
Petrol prices could still rise
While shortages are not expected, Chalmers acknowledged petrol prices could increase depending on how the conflict develops.
When asked whether Australian petrol prices could rise beyond $3 per litre, he said current government modelling does not predict that scenario.
“We don’t have a model that has petrol prices going that high,” he said.
However, he warned that the global oil market remains unpredictable.
“There’s a lot of volatility and a lot of unpredictability in the global oil market.”
Government watching fuel retailers
The government is also monitoring petrol retailers to ensure consumers are not being overcharged.
Chalmers said authorities are working with the Australian Competition and Consumer Commission (ACCC) to prevent price gouging.
That includes closely examining retail fuel pricing if international oil costs continue to climb.
Pressure on the cost of living
Fuel prices are closely linked to inflation and household budgets in Australia.
Higher petrol prices can quickly increase the cost of transport, food and other goods.
As the global conflict continues, economists say energy markets will remain one of the key factors shaping the Australian economy in the coming months.