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The Federal Government has downplayed the prospects of introducing fuel-buying limits, but the pathway to making it happen may not need national sign-off if one state's situation grows dire.
The Federal Government has again poured cold water on the chances of rationing fuel in the near future, amid conflict in the Middle East that has placed pressure on petrol and diesel supplies.
However, Energy Minister Chris Bowen says the state governments have the power to initiate rationing themselves if necessary, and that it would not need to occur at a federal level.
Bowen said last week he is confident of fuel shipments in Australia until late April, confirming that of the 81 ships due on local shores between mid-April and mid-May carrying oil, only about six have been deferred or cancelled.
Rationing occurred several times in Australia during the 1970s and 1980s, using a mix of a cap on the monetary value of fuel motorists could purchase, making it available to odd and even number-plate drivers on alternating days, and prioritising essential users such as healthcare workers.
Bowen said previous rationing measures were an initiative of state governments.
“[The state governments] have strong powers… when I was a kid in the 80s in Sydney – I remember petrol rationing; it was done by state governments. The state governments do have powers there,” he said.
Under the National Liquid Fuel Emergency Act 1984, Bowen, as the Federal Minister for Climate Change and Energy, has a wide range of powers, including implementing nationwide fuel rationing and creating exceptions for essential users such as emergency services.
But he downplayed suggestions these powers would be implemented.
“The National Liquid Fuel Emergency Act 1984. It’s never been invoked, ever. Not through the first two Gulf Wars, not through COVID. It’s not designed to be invoked lightly,” Bowen said.
“It really has powers primarily around defence and health in the first instance, to ensure that those key areas are getting the diesel they need, but also other forms of fuel.
“I would need to be satisfied that there’s a real shortage and that the powers under that act are useful.
“Yes, the Commonwealth government under the fuel emergency act has powers. We are not contemplating at this point needing to use any of those powers.
“Of course, they’re there, and I think that can also give Australians reassurance that yes, there are powers there and there’s plans in place, and we continue to be planning for the worst, should this get worse and should it roll on for a long time.”
The Government has repeatedly stressed that fuel shortages in regional areas have been caused by surges in demand combined with logistical challenges, and that the supply of fuel into Australia has changed little since the outbreak of conflict in the Middle East last month.
Speaking to media last Friday, Bowen was confident that the supply of fuel into Australia was steady until late April.
“Beyond that late April period, we're dealing with more uncertainty, depends how the international circumstance rolls out,” Bowen said.
Max is the News Publishing Coordinator for Drive. He enjoys creating engaging digital content, including videos, podcasts, interactive maps, and graphs. Prior to Drive, he studied at Monash University and gained experience working for various publications. He grew up playing Burnout 3: Takedown on the PS2 and was disappointed when real life car races didn’t have the same physics.
