Fuel crisis: PM appoints new national fuel coordinator amid escalating concerns about shortages amid Iran war

Anthony Albanese has appointed a national fuel coordinator amid escalating concerns about shortages of petrol, diesel, and jet fuel in the wake of the US-Israel-Iran war.

The Prime Minister revealed the new fuel tsar after holding the National Cabinet in Tasmania on Thursday with state and territory leaders.

Anthea Harris, former head of both the Australian Energy Regulator and the Energy Security Board, as well as a former Deputy Secretary for Victoria’s energy group, will take up the role.

The COVID-era type role will monitor, coordinate, and intervene in distribution of fuel in Australia.

Mr Albanese said she had an unmatched level of industry expertise and insisted the taskforce was a “sensible measure”.

Ms Harris has also previously served as the deputy secretary of the energy group within the Victorian Department of Environment, Land, Water, and Planning.

The PM credited her state-based energy work as important to drive coordination between the Commonwealth and the states and territories on fuel security and supply chain resilience.

“I can’t think of anyone better with more experience, more knowledge, as well as that experience in a state government to be able to coordinate these efforts,” he told reporters at a press conference in Hobart.

Federally, Ms Harris would also help to work across portfolios which would be hardest hit by shortages, such as Energy, Transport, Agriculture and Industry.

Federal Energy Minister Chris Bowen admitted there were “challenges in fertilisers” as an “acute end of the spectrum” of the follow-on effect from the global energy shock the Middle East conflict has caused.

“At this point, supply chains are working relatively well but there are implications which need to be coordinated. Fertiliser is, if you like, at the acute end of the spectrum,” he said.

Nationals Senator Bridget McKenzie claimed the appointment was an admission that Mr Bowen wasn’t up to the job of alleviating pressures for everyday Australians.

“I think it’s an admission that Chris Bowen is a failure as energy minister,” she told Sky News on Thursday, accusing Mr Bowen of “gaslighting” Aussies amid the energy crisis.

“This is the third week of this crisis . . . and we’re only getting to appointing people for the significant logistics task to make sure we get fuel where and when we need it.”

Opposition leader Angus Taylor said it was imperative that fuel supplies got to critical sectors like trucking and agriculture as well as regional areas who were already reporting that local service stations had dried up.

He also accused Mr Bowen of being too late to act on the issue after the war broke out on February 28 after the US and Israel led joint strikes on Iran.

The military action had led to the closure to Western vessels in the Strait of Hormuz, an about 30km stretch of water where more than 20 per cent of the world’s oil passes through.

“This is a minister who has been asleep at the wheel,” he said.

“We’re hearing about businesses, farmers and truckies. These businesses are the engine room of our economy. They’re deeply concerned about shortages.

“Farmers have got to get their plants off and plants in. Short windows, you can’t miss those windows.

“The government’s not on top of it.”

Premiers and Chief Ministers were instructed at National Cabinet to also put forward State Controllers to work alongside Ms Harris and collaborate on how they’re managing the fuel crisis.

WA Labor leader Roger Cook was the first off the mark, naming Wheatbelt Development Commission chief executive Rob Cossart as WA’s “fuel security state controller” on Thursday afternoon.

“I thank the Prime Minister for convening the meeting of National Cabinet, which was an important step forward to drive national co-ordination between the Commonwealth and the states and territories on fuel security and fuel supply,” Mr Cook said.

It comes as some areas of the nations, particularly regional and remote communities, were reporting that their local services stations had run dry of fuel with no further deliveries on the horizon.

NSW Premier Chris Minns told Parliament that dozens of stations across his State were reporting issues obtaining fuel.

“As it stands today, we are seeing signs of around 80 petrol stations, primarily independent petrol stations, that don’t have access to diesel, and around half that number don’t have access to any fuel,” he told Parliament.

“We won’t allow and must be vigilant against price gouging up and down the supply chain.”

He welcomed a newly launched probe by Australia’s consumer watchdog into any abuse of market power, following allegations of anti-competitive behaviour in rural and regional areas.

In a statement on Thursday, the ACCC name-checked the conduct of Ampol, BP, Mobil Oil, and Viva Energy.

“The ACCC is closely scrutinising all fuel markets during this period, and we have received reports of alleged anti-competitive behaviour. We are therefore investigating these matters urgently,” ACCC Chair Gina Cass-Gottlieb said.

Mr Minns had questioned how some smaller stations couldn’t secure fuel amid a steady flow of exports and measures by the Federal Government to increase supply.

“There should be enough fuel. There’s been no cancellations of inbound fuel transports,” he said.

Mr Bowen had late last week moved to unlock up to 762 million litres of petrol and diesel from emergency reserves to meet regional demand to help ease chokepoints, particularly in regional communities.

The government also temporarily relaxed sulfur fuel standards for 60 days to allow an extra 100 million litres of fuel to stay in the domestic market rather than the supply being exported to be blended.

The redirected supply will be prioritised in the regions where there are shortages.

Mr Bowen confirmed on Thursday an additional 519 million litres of petrol and diesel was now being directed into regional Australia.

It equates to four additional days’ worth of diesel and three of petrol.

“I’m working directly with industry to get more petrol and diesel out the door,” Mr Bowen said.

All state and federal leaders warned against panic buying fuel.

Speaking in Brisbane, Mr Bowen reiterated a call for calm across the Australian public, claiming all contracted shipments were being honoured and refineries were working “at full pelt”.

“There’s no need to panic because the ships are arriving, the refineries are working at full pelt.”

“The ships continue to arrive in Australia with petrol and diesel on them.

“We’ll continue to do what is necessary to see those shortages alleviated as soon as possible.”

Mr Albanese said he understood the concerns of Australians watching the upfolding conflict in the Middle East but urged them not to panic buy.

“I want to assure Australians at this time that Australia is well prepared. Our fuel supply is currently secure,” he said.

“We’re doing all that we can to secure our fuel supply and to get it to the places that need it.

“I again reiterate today my message to Australians is, please do not take more fuel than you need. Only take what you need. It’s the Australian way to think of others.”

He said there was a “good feeling of common purpose” expressed during the virtual meeting of Premiers and Chief Ministers on Thursday.

“The National cabinet acknowledged that the longer the conflict in the Middle East goes on, the more significant the impact will be for global supply chains, fuel prices and the wider economy,” the PM said.

“We do not want to see the conflict escalate further.

“My government will be announcing more measures to prepare the nation for supply chain challenges over the coming days and weeks.”