Michael McCormack (Riverina, National Party) Share this | Link to this | Hansard source

My question is to the Minister for Climate Change and Energy. Minister, what is your plan to get fuel to the more than 400 service stations that have no fuel?

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

The government's plan is to work to increase the fuel supply in Australia by releasing 20 per cent of the minimum stock obligation, which we have done. We have done so on the condition from the minimum stock entities that they see that fuel flowing to regional Australia. That has been entered into and has been implemented. I also announced a temporary relaxation of the rules for sulphur for petrol, which will see an extra 100 million litres of fuel be supplied to the system each month.

In addition, the Prime Minister has convened National Cabinet, I've convened energy ministers, and we have agreed to keep working together on contingency plans. We will work every day with refiners and with suppliers to ensure that that fuel flows to where there are real shortages as a result of the increases in demand that we have seen across Australia.

The Leader of the Opposition interjected, which I'll take. He said, 'It's only increases in demand.' If the Leader of the Opposition could point to one ship that hasn't arrived or one refinery that isn't working—

Opposition members interjecting—

As the government has made clear on multiple occasions, every ship that has been expected has arrived. We have very transparently said that there have been cancellations in April. The Leader of the Opposition is the one who has misled people and said that we are stopping exports from Australia, which is not true.

Milton Dick (Speaker) Share this | Link to this | Hansard source

The manager on a point of order?

Dan Tehan (Wannon, Liberal Party, Shadow Minister for Energy and Emissions Reduction) Share this | Link to this | Hansard source

It goes to direct relevance. The question wasn't about the Leader of the Opposition; it was about your—

Milton Dick (Speaker) Share this | Link to this | Hansard source

Resume your seat.

Opposition members interjecting—

Order! The manager has made his point of order. He was correct. The minister wasn't asked about the Leader of the Opposition, but if the Leader of the Opposition interjects and—

Government members interjecting—

Order! Members on my right! To make sure the minister's not talking about the opposition, I would suggest no-one from the opposition interjects so he doesn't take the interjection.

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

The government will work with anyone of goodwill, as we have done across the board. We have not heard a single constructive suggestion from the opposition—not a single one. There's been plenty of sledging and no solutions. There have been plenty of insults but no ideas. All we have seen is politics and negativity. I'm asked about fuel shortages.

Milton Dick (Speaker) Share this | Link to this | Hansard source

The manager's taken a point of order on relevance. He won't be able to do it again.

Dan Tehan (Wannon, Liberal Party, Shadow Minister for Energy and Emissions Reduction) Share this | Link to this | Hansard source

The minister is defying your ruling.

Milton Dick (Speaker) Share this | Link to this | Hansard source

Resume your seat. He was just in mid-sentence saying that he was asked about fuel shortages and the plan, and he's talking about that. You missed the boat there.

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

I was asked about fuel shortage. To give credit where it's due—nobody in the leadership group—some Liberal Party and National Party members have been to see me to talk to me about issues in their electorates, in good faith, and they would concede that we have worked well together. We have worked well together to do that. I'll continue to do that. But the leadership of the Liberal Party has chosen partisanship, not patriotism, and they should hang their heads in shame.

Basem Abdo (Calwell, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Climate Change and Energy. Can the minister update the House on Australia's fuel supply? How has the Albanese Labor government acted to strengthen our fuel supply?

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 and for everything he's done in this House since he arrived here this year. We've heard this week from the President of the European Commission and the Executive Director of the International Energy Agency about just how acute this international crisis is, and both made the point that no country is immune from its impacts—a point the Prime Minister and I and the entire government have been making now for the best part of a month. There will be impacts. We need to prepare, and we need to ensure that we use this as an opportunity to increase our sovereign capability as well.

On Friday last, in Brisbane, I announced changes to the fuel security services payment to ensure that our two existing refineries continue to operate after a decade where we saw the de-industrialisation of Australian refining and saw four refineries shut their operations in Australia. Enough! No refinery will close under the Albanese government, and the payments we announced on Friday in Brisbane will ensure that that is the case. I'm very pleased to have been able to work with the refiners to ensure that that is the case.

Today, I can announce further measures, because we continue to see shortages in diesel. Despite the fact our national stocks are strong and imports continue to arrive, we continue to see shortages around the country, as honourable members have said. We should do everything sensible to increase supply, so I can announce today that I have changed the diesel standards when it comes to the combustion temperature and allowed a slightly lower combustion temperature of 60.5 degrees, which is called the flashpoint and which provides a little more flexibility to importers as to what diesel we can import into Australia and a little more flexibility for refiners to switch between fuels as well.

These are practical measures, not suggested by the opposition—not suggested at any point by any member opposite—but taken by us to get the job done. These are the sorts of practical things which add to what we've already done. Releasing 20 per cent of the minimum stock obligation was not an easy decision and not a decision lightly taken but 100 per cent the right decision in the circumstances—and not just released carte blanche but released on the condition from those entities that they will see the spot market and the regional areas supplied. That is having an effect now. The increase in sulphur rules, which could not apply to diesel despite some members opposite saying it should, simply could not be allowed to be applied to diesel. And this flashpoint decision today will see additional diesel supply into Australia, which will see increased supply from our refiners and increased flexibility for our refiners. These are practical measures taken by a government taking action in the face of international uncertainty when all we have seen from the opposition is partisanship, not patriotism.

Tom Venning (Grey, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Climate Change and Energy. I refer to the front page of today's Sydney Morning Herald with an article titled, 'States warn Albanese of fuel ration confusion'. Have any state and territory energy ministers requested that the federal government prepare a fuel-rationing plan?

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

I refer the honourable gentleman to my answer yesterday in which I confirmed to the House the great revelation that the energy ministers had met last Friday and issued a communique, which is not a secret document. For the benefit of honourable members opposite, the communique reads, in part:

Ministers agreed that there are shared responsibilities and it will be critical to work together to maintain fuel security by anticipating risks and enabling timely, coordinated responses. Ministers tasked Senior Officials to regularly report on fuel security and potential responses. Ministers will continue to monitor fuel supplies and work together to respond as the situation evolves.

A communique!

Milton Dick (Speaker) Share this | Link to this | Hansard source

Resume your seat for a moment, Manager. The question was about a media report; the member for Grey asked about whether requests had been made to lead to fuel-rationing plans. The minister was directly answering that part of the question, when he was on his feet, about what the ministers had discussed and what the requests, I assume, were that led to that. That is pretty directly relevant, so we'll just have to agree to disagree. In this case, I'm going to endorse what the minister is saying, because he is being directly relevant about the question he was asked. Manager, on a point of order?

Dan Tehan (Wannon, Liberal Party, Shadow Minister for Energy and Emissions Reduction) Share this | Link to this | Hansard source

Just on your statement there, the question was really specific, and this is really important. It goes to a significant national issue—

Government members interjecting—

about a fuel-rationing plan. The minister isn't addressing that.

Milton Dick (Speaker) Share this | Link to this | Hansard source

The Leader of the House.

Mr Tony Burke (Watson, Australian Labor Party, Leader of the House) Share this | Link to this | Hansard source

To the point of order, almost every time a point of order is taken by those opposite—particularly the Manager of Opposition Business—on direct relevance, they then pretend that a whole lot of the words of the question were not there. The start of this question referred to an article on the front page of the Sydney Morning Herald. I've just had a look at the full contents of that article. It goes through a broad range of issues. It refers at length to the Prime Minister's speech last night. If you're going to have those words in the question, then they become part of direct relevance in the answer.

Milton Dick (Speaker) Share this | Link to this | Hansard source

Yes. I've given the Manager a good go. Can you just resume your seat. We heard from you.

No, resume your seat.

Opposition members interjecting—

Yes, I understand that, but common sense would prevail. If a member is asking about an article, you don't just refer to the title of the article; it's about the article itself. But we're not getting into the semantics here. We just want to make sure that the minister is being directly relevant about the issue of fuel rationing that he was asked about as part of the article that he was asked about.

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

As I've previously said in the House as well, the Commonwealth and the states are working together off the frame of the National Liquid Fuel Emergency Response Plan, which is a document that's existed under governments of all persuasions for the last 20 years.

Just as in COVID, where the Morrison government worked with states, the Albanese government is working with states on contingency planning on all the measures. The difference now is that, during COVID, the Morrison government had an opposition which was constructive. The Morrison government had an opposition which made policy suggestions, which gave support to controversial measures when it didn't have to. I was shadow minister. I remember Labor Party members complaining to me: 'You're being too soft on the Morrison government. You shouldn't give them that much support.' I said: 'That would not be good for the country. That would not be good for Australia.' But the Taylor opposition sees an international crisis as a political-point-scoring opportunity, not an opportunity to be the adults in the room. I suspect the Australian people will have views about that performance.

Mike Freelander (Macarthur, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Treasurer. What steps is the Albanese Labor government taking in relation to fuel supply and affordability? How does this compare with other approaches?

Jim Chalmers (Rankin, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

Mr Speaker, I hope it's okay that I also shout-out the National Schools Constitutional Convention friends who've joined us today. I thank the member for Macarthur for his question. As a wonderful local member in an outer-metro community a bit like mine, I know that he understands the pressures that people are feeling right around Australia.

Australians are under cost-of-living pressure, and the conflict in the Middle East is adding to that pressure. We recognise that, and, more than recognising that, we're taking action to help address it. Tomorrow, as the Minister for Climate Change and Energy said, we'll introduce new legislation to help consumers get a fair go at the petrol pump, with bigger penalties for misconduct in the fuel sector.

The conflict overseas is no excuse for suppliers or servos to take advantage of Australians. We are putting the petrol companies on notice. Our new laws will double the penalties for false or misleading conduct and cartel behaviour to a maximum of $100 million per offence. That means bigger penalties for any servos and suppliers that rip off Australian motorists. It's on top of all of the other action we're taking to address fuel affordability and security, supporting our refineries, as the minister said; boosting fuel supply; getting more fuel into the market; working with industry and international partners; and empowering the ACCC.

Late last year we also legislated to strengthen Australia's fuel security, and the explanatory memorandum of our legislation said, 'It would ensure the government is well placed to efficiently respond to potential shortages of critical fuels.' The bill amended the Minimum Stockholding Obligation to help us manage critical fuel shortages. It facilitated more information gathering. It was about fuel related products critical to Australia's trucking industry, diesel exhaust fluid and technical grade urea. It was all about making sure that we could respond to situations like this.

I remind the House that those opposite voted against fuel security at the end of last year. They had the opportunity to support some sensible measures to make it easier for Australia to deal with and respond to threats to our fuel security, and they voted against it. I call on them to not make the same mistake again when it comes to bigger penalties for servos and suppliers who are doing the wrong thing. We call on them to back this bill to put in place higher penalties for petrol companies and to protect motorists. Our legislation is all about a fair go for Australians at the petrol pump.

Tim Wilson (Goldstein, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

We call you to turn down inflation. We call on you to stop inflation.

Jim Chalmers (Rankin, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

We recognise—

Milton Dick (Speaker) Share this | Link to this | Hansard source

The Treasurer will pause. The shadow Treasurer is interjecting way too much. This is his first and final warning because we won't be having the MPI if that continues. It's your call.

Jim Chalmers (Rankin, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

We are not immune from uncertainty in the global economy. We know that, but this action will help protect consumers and hold petrol suppliers and retailers to account. As the energy minister said, those opposite should stop playing politics, be patriots in this regard and support our legislation

Andrew Wilkie (Clark, Independent) Share this | Link to this | Hansard source

My question is to the Minister for Climate Change and Energy. The Minimum Stockholding Obligation for liquid fuel only applies to diesel, petrol and jet fuel. It does not apply to bunker fuel, which is a specialised marine fuel oil used by the shipping industry. Minister, seeing as shipping is responsible for transporting almost all of our island nation's trade and indeed Tasmania's trade, will you use your power the Liquid Fuel Emergency Act to bring the same priority to bunker fuel?

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

I thank the honourable member for the question and the spirit in which he raises it, on behalf of his electorate and in the national interest. The honourable member is right. There are a range of bunker fuels used in domestic and international shipping. Marine fuel is one of the most significant, along with marine diesel. Fuel oil accounted for one per cent of Australia's refined product use in 2025. I do know that the Minister for Infrastructure, Transport, Regional Development and Local Government is engaging directly with the maritime sector, and I can tell the member for Clark that I've also engaged directly with the Tasmanian minister for energy and renewables, and we are working well together.

I can also tell the honourable member that, as part of the release of the Minimum Stockholding Obligation, although the member is right that bunker fuel is not in the Minimum Stockholding Obligation, we were nevertheless able to make a condition of the release of the Minimum Stockholding Obligation, prioritising maritime oil supply for cargo and passenger vessels to Tasmania, ports, fisheries and forestry. That has been done as part of the MSO release. I can also tell the member for Clark that approximately 13 per cent of the production from Geelong is for fuel oil, and last year total fuel oil production in Australia averaged 23 million litres a month, with the production of fuel oil supported by the announcement I just referred to that we made on Friday of support for our two refineries to ensure that Australian domestic capability.

In relation to the honourable member's question about the Liquid Fuel Emergency Act, I've pointed out before that the test for invoking that act is very high, quite rightly. It has never been invoked in the last 40 years—not through the two gulf crises, not through COVID and not at any other time.Of course, it is there to be invoked if necessary, but at this point I am not envisaging requiring that. Indeed, the measures that I refer to show what can be done without invoking that act.