Matt Burnell (Spence, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Climate Change and Energy. What is the Albanese Labor government's response to the fuel challenges being caused by the conflict in the Middle East?

Chris Bowen (McMahon, Australian Labor Party, Minister for Climate Change and Energy) Share this | Link to this | Hansard source

I thank my honourable friend for the question. The situation remains a very difficult international environment. Fuel supplies continue to arrive in Australia as scheduled, and our fuel stocks remain very strong. Our minimum stock obligation is being held and is in excess.

But the situation also is this: in rural and regional Australia in particular, we continue to see unacceptable shortages, we continue to see supply chain constraints and we continue to see a doubling of demand. It is the case that demand has doubled. Use has not. Demand has doubled. As I've said previously, to a certain degree, that is very understandable as Australians are concerned when they see the news about what's happening internationally. Therefore, it's incumbent on all honourable members to continue the message that our fuel supplies are secure.

In addition, the government has been working all week to ensure that we are doing everything possible with the industry to see as much supply as possible flow. I'm pleased to announce to the House further actions undertaken today to build on the actions taken yesterday by the Treasurer and I, and by other ministers during the week. Today I have decided to relax the requirements under the Fuel Quality Standards Act when it comes to sulphur content on a temporary 60-day basis. This will see 100 million litres of extra fuel flow in Australia a month over that time. This is relevant only to the Ampol refinery, which currently makes fuel for export to countries with lower fuel standards than us. This will, as I said, enable that supply to be blended into the existing Australian supply, and it will see 100 million litres of extra fuel each month for the two months for which I have provided the relaxation. I have asked for and received an assurance from Ampol that this extra supply will be prioritised for regional Australia and for the spot market to take pressure off those regional areas feeling such pressure. This will be felt most immediately in Queensland, where the Lytton refinery is. I can assure Australians that, while this is a relaxation, our fuel quality will remain very high by international standards—higher than when we came to office. The standards will still be higher than in 2022 and indeed higher than in 2025.

This sensible relaxation accompanies also the operation of the National Coordination Mechanism, which is operating as I speak to ensure that we are working with industry. This is a practical measure: 100 million litres of extra fuel each month, which will be prioritised for regional Australia, with a particular emphasis on Queensland. This is action taken by the government; the opposition didn't call for this. The government has done it because it is a practical action to help farmers, help regional Australians, through this immediate crisis.