Australians are watching petrol prices closely as global tensions affect oil markets, but the federal government says the country has enough fuel reserves to manage potential disruptions.
Infrastructure Minister Catherine King says Australia currently holds weeks of fuel supplies as part of its national fuel security system.
Speaking on RN Breakfast, King said Australia has 37 days of petrol, 30 days of diesel and 29 days of jet fuel in reserve.
Those reserves form part of Australia’s minimum fuel stockholding obligation, a policy introduced to strengthen energy security in a country heavily reliant on imported fuel.
Global tensions pushing oil prices higher
Fuel markets around the world have been affected by instability in the Middle East, one of the world’s key oil-producing regions.
When geopolitical tensions increase in oil-producing areas, global fuel prices often react quickly.
For countries like Australia — which imports a large portion of its refined fuel — those global price movements can flow through to petrol prices at the pump.
Government says system designed for volatility
Catherine King said Australia has been aware of fuel security risks for years.
She said policymakers have long recognised how dependent the country is on overseas fuel markets.
Speaking on radio, King said the government had been preparing for this kind of global volatility.
The minimum stockholding obligation requires fuel companies operating in Australia to maintain minimum reserves of key fuels.
The aim is to ensure the country has buffer supplies if international markets experience disruptions.
What it means for drivers
Even with national reserves in place, Australian motorists can still feel the impact of global oil price shifts.
Retail petrol prices often move based on international oil markets and exchange rates.
However, officials say the current reserve levels mean Australia has a significant buffer should supply chains be disrupted.
The government continues to monitor global developments as tensions in energy markets evolve.