The federal minister for climate change and energy says Australia’s fuel supply remains strong and that domestic shortages are largely due to panic buying.
“We updated our numbers yesterday, as we now do weekly, and actually the gas supply has increased a bit – there’s enough to last 38 days,” said Chris Bowen ABC Insider yesterday (March 22, 2026).
“Diesel and jet fuel are both at 30 days, which is pretty flat and that shows that while we have released more from the strategic reserve, the ships continue to arrive in good numbers and our two refineries are absolutely running at full speed and both are 100 per cent focused on Australian suppliers and not exports.”
“So we’re actually seeing the same, if not slightly higher, levels of petrol and diesel in Australia than we were seeing right before this crisis began.
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“We get an average of about 81 boats a month delivering fuel to Australia. We are aware of six boats that have been canceled out of that average of 81. And some of those have already been replaced by the importers and refiners with other sources.”
Mr Bowen said these six canceled vessels were mainly from various refineries in South Korea, Singapore and Malaysia and that refiners and importers were working with the government to replace these shipments.
However, he warned that there could be more ship cancellations in the coming weeks.
“We are in an uncertain environment, so we are carrying out and continuing to carry out all the preparation work that I have indicated throughout the week,” he said.
“However, I think these six points out of 80 at this point give us some insight into the context of what we are dealing with.
“It’s not without its challenges, but I also don’t want people to think – I can understand, you know, in the debate people think all the ships are coming now and one day they’ll all stop at once. That’s highly unlikely.”
“It is much more likely that there will be supply shortages, but that governments will work with refiners and importers to manage these and minimize the impact.
He said oil arriving in Australia came mainly from Malaysia, with some also from Mexico and the US. However, Mr Bowen said he understood there may have been some mixing of Russian oil at various points in the supply chain, although Australia continues to refuse to import oil directly from Russia.
Fuel prices have skyrocketed in Australia and there are reports that some gas stations are already running out of fuel.
“I think you should always expect Australians to be concerned when they see oil ships being bombed on TV at night. So yes, that was understandable and expected,” Mr Bowen said of the surge in demand.
“The regional areas are where the supply chain is the most difficult to manage. It takes longer to get from Geelong and Brisbane to the different regional areas.
“There are also many rural suppliers and gas stations that operate on very low margins and cannot always access the available fuel. There is also a functioning spot market there.
“So what the refiners have had to do is, understandably, by law, prioritize those for which they have contractual obligations. The spot market wasn’t really working and all of that had the biggest impact on rural and regional Australia.”
Panic buying has become a problem as Prime Minister Anthony Albanese last week urged Australians to be good neighbors and only take what they need after demand doubled in some locations.
Responding to the International Energy Agency’s recommendations to work from home and drive less, Mr Bowen said: “Well, I think that’s a sensible thing to do in any environment really. Working from home has become an important part of Australian working life.”
“I think some people would already be doing that. There are other people for whom it’s not an option. And I think people would already be looking for ways to minimize their fuel consumption right now – for others it’s much more difficult.”
“That’s why I don’t believe that a one-size-fits-all approach is necessary and that this IEA report is really a hodgepodge, if you will, of options that all countries around the world can consider in light of their individual circumstances.”
In his role, Mr Bowen could use the National Liquid Fuel Emergency Act (1984) to control domestic fuel supplies and enforce measures such as rationing. However, the minister has ruled out deployment.
“It has never been invoked. Not during the first two Gulf Wars, not through COVID. It is not intended to be invoked lightly,” he said of the law.
“It has powers primarily in defense and health to ensure that those key areas get the diesel they need, but also other types of fuel. I would need to be satisfied that there is indeed a shortage and that the powers of this bill are useful.”
“We’re not thinking about using those powers at this stage. Of course they’re there and I think that can also reassure Australians that there are powers and plans there and we continue to plan for the worst should it get worse and it continues for some time.”
“But I really think – because we’re sending the message to Australians that please buy as much fuel as you need, but no more, no less – that it’s important to put this into context.”
Mr Bowen said he would need advice from the National Oil Supply Emergency Committee to invoke the law. This committee consists of representatives from each state and territory as well as representatives from the Commonwealth and has met seven times.
“I wouldn’t exercise these quite remarkable powers unless I had clear advice that it was necessary in the circumstances. And of course I would enforce that with the states.”
Asked when the Government might trigger this law and introduce measures such as fuel rationing, Mr Bowen replied that state governments have these powers but “we are a long way from that”.
“There’s the national emergency liquid fuel response, which is actually a COAG agreement that was agreed before the national cabinet about 20 years ago. And it still exists. And it runs through the various powers that the states and territories have, the Commonwealth Minister has, what you would do before you get there – voluntary action, encouragement, etc.”
“If we have, you know, at this point, let’s say 74 of the 80 ships we expect to arrive in April and May, our refineries running at full capacity and not exporting diesel or gasoline to any other country – but only supplying Australia, which is now the case after some changes I made a few weeks ago – that would suggest to me that our fuel supply remains strong.”
“I understand that people will hear me say that and then say, ‘Well, I can’t get petrol at my petrol station; neither can be true’. In fact, both can be true. We can have strong fuel imports into Australia and our refineries are working very well, and we also have distribution problems.”
“It’s unacceptable distribution problems when you’re in a regional area and you’re having trouble getting fuel. We have a number of gas stations across the country – again, in the grand scheme of things, it’s a small percentage of gas stations that can’t get fuel… (But) it’s a big problem for these people.”
Last week, the Albanian government appointed Anthea Harris as the first coordinator of the fuel supply taskforce. Their role, the government said, will be to drive coordination between federal, state and territory governments and keep those governments informed about the fuel supply outlook.
Since the start of the latest Middle East conflict about two weeks ago, the Australian government has released up to 20 percent of national diesel and fuel reserves and also temporarily changed fuel standards to allow higher sulfur fuels.
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