"It is increasingly clear from feedback from employers across the national economy that the impact from current and anticipated fuel shortages is already significantly biting into productivity and output with greater deterioration to come," said Innes Willox, Chief Executive of the national employer association, Australian Industry Group.
"The Federal Government should now lay every option on the table while working with the states and territories to deal with the escalating fuel crisis which requires a national response. These options should include a possible cut to fuel excise, consideration of structured fuel rationing and discounted public transport fares.
"Employers and employees are grappling with the uncertainty that has been created, both by the global situation and the need for a clear and decisive national response. All Australians need the confidence to plan beyond what are expected to be significant fuel shortages in the coming weeks.
"The Government has already shown leadership, through national co-ordination, changes to fuel sources and releasing additional supplies.
"But deep concern about the future is producing unintended and unforeseen consequences that are playing out in workplaces. Employers are already reporting an increase in absenteeism among workers across the economy in sectors such as construction, manufacturing, retail and care.
"There is also an increased focus by employers on the future impact of petroleum shortages on areas such as packaging, plastics, detergents, piping, roofing and insulation among others upon which the broader economy relies. Employers also report existing supply chains are becoming more fragile and unreliable as other economies take steps to inoculate themselves. Those impacts threaten to ripple through the economy in the time ahead.
"It is for those reasons that the Government needs to consider absolutely every option, as difficult as they may seem, to cauterise the impending impact of fuel shortages on industry, households and the broader economy.
"We also cannot afford a fracturing of the federation with individual states taking actions out of step with the rest of the country. We have seen the disastrous impact of those type of actions during Covid. It is for this reason that industry seeks a national approach with clear directions from the Federal Government that gives greater certainty and predictability to businesses and households," Mr Willox said.
