The Albanese Government will help to address fuel supply chain disruption by releasing up to 20 per cent of the baseline Minimum Stockholding Obligation for petrol and diesel.
This will allow the release of up to 762 million litres of petrol and diesel from Australia's domestic reserves, where these can be targeted towards localised market disruption. This will take time to move through Australia's long and complex supply chain from where fuel is held to the regional areas where it's needed.
We continue to see expected ships arrive in our ports. However, a huge spike in demand has led to local shortages in many parts of regional Australia, and imports will come under further pressure should the conflict in the Middle East continue.
There is no need to stockpile or hoard fuel - take what you usually need so that no one has to go without.
The Government will allow fuel companies to hold less in storage and get more into pumps in our regional areas struggling with fuel shortages. These are the stocks of fuel held in Australia, which must be maintained each week by bulk importers and refineries.
As Australians' fuel consumption has not changed, this will help relieve pressure on distribution chains disrupted by elevated demand.
To avoid further market disruption, companies will only be allowed to relax their storage obligations if:
- They are taking steps to prioritise supply to regional customers, with a focus for supply to regional, agricultural and maritime customers experiencing supply shortages;
- They are taking steps to allocate reasonable additional supply to bulk customers such as independent regional distributors
- They are providing volumes needed to help meet usual demand, not tobe expected to provide uncontracted distributors or customers seeking to profiteer from global price spikes, panic purchasing or stockpiling with above normal quantities of fuel.
The Government will work with MSO companies over coming days and seek commitments from those who can help address localised pressures.
The Government has notified states and territories of these changes and will continue to work co-operatively with the states and territories through the National Oil Supplies Emergency Committee.
Relaxing the MSO will also serve as a contribution to the International Energy Agency's global collective action. This temporary reduction in the MSO could be equivalent to up to 5 million barrels.
It is clear, there will be supply impacts if this war continues - and the world is acting to mitigate those impacts. We will always act in Australia's best interests.
