Across ANZ: Local Authorities Take Urgent Measures Against Ongoing Fuel Crisis
Zbynek Burival
Due to current global conflicts, there have been fuel shortages across the globe. In Australia, the government has instituted the National Fuel Security Plan, which aims to secure enough fuel from global suppliers and distributors so that citizens will still be able to regularly purchase fuel for everyday use. The plan also aims to provide citizens with key information regarding the status of the fuel situation in the country, as well as coordinating with local fuel suppliers so that supply chains remain stable. This plan includes four levels of action taken by the government. As of present, the current action level is two. This level does not see any direct intervention from the government in domestic fuel usage; instead seeing supervision and suggested measures to help reduce fuel consumption across several major industries.
Many have addressed concerns with the level of action taken by the federal government, as the fuel shortage has seen large impacts on the local level. Citizens have grown worried about rising gas prices and even potential food shortages due to fertilizer shortages coming along as well. Service stations across the country are lacking either standard or diesel fuel, leading to many individuals having to go without sufficient fuel for their cars. This is in part due to rising concern leading to many citizens stockpiling fuel, as well as general shortages due to the global situation. As individuals continue to experience the impacts of the fuel crisis, many have found that the federal government's current response has been lacking, with too little being done for the situation.
This unrest has led many state governments in Australia to take direct action themselves, as the federal government has not yet escalated the response level to a point that sufficiently addresses local issues. For example, the Western Australia state government has assumed a more direct role in managing concerns, taking clear actions in allocating fuel resources, and prioritizing industries that need more immediate attention.
In Victoria and Tasmania, the state governments have made public transit options free in order to help decrease overall fuel consumption. In Victoria, all public transport has been made free to its citizens since March, extending into April, with future pricing remaining unspecified. In Tasmania, the government has declared that public transportation will be free to use until the end of June. These actions have provided far more support to citizens than the federal government has been able to do for individuals.
The federal government has attempted to ease the financial burden on individuals brought on by the rising fuel prices, but its actions have not been enough to combat price hikes. The federal government cut excise taxes in half, lowering the cost of fuel per liter by about 26.3 cents. While this was helpful to the Australian people, it did not solve the problem by any means. Lowering costs would ease pressures on Australians, but it would not help to conserve the very limited resources available.
The lack of direct action from the federal government has led to some states taking far more direct measures to ensure their own resource security. Western Australia has secured its own state fuel reserve of 8 billion liters, ensuring that Western Australians will not go without fuel, especially for essential industries that require it, such as the major agricultural industry in the state. Western Australia has justified having a state-level fuel reserve due to its large size and numerous remote communities that would typically struggle to access fuel during a national shortage.
The federal government has embraced Western Australia’s autonomy in this right, with Federal Energy Minister Chris Bowen encouraging similar positive actions from other states. Some states expressed concern that Western Australia was prioritizing itself over the whole of the nation; however, Bowen has stated that the federal government will support states taking similar action.
Australia as a whole is impacted greatly by this global fuel shortage due to its dependence on imports. Only about 4% of the fuel used in Australia is refined within the country. Due to this, it has been important for Australia to find fuel suppliers wherever possible. This was one of the main causes of concern regarding Western Australia’s procurement of a state supply; however, the WA government ensured that this fuel was obtained from separate sources, so as not to compete with the rest of the nation for suppliers. Critically, this fuel will be directed towards remote Aboriginal communities as well as the major agriculture and mining industries that support the WA economy.
As the current situation in Western Asia continues to limit international fuel supply, the way in which both the federal and state governments respond to the issue will continue to develop. The federal government has yet to increase its response level further, and has encouraged state governments to take their own actions. Due to this, as time goes on, many more states may adopt similar responses to Western Australia, Tasmania, and Victoria.
