Dean Smith (WA, Liberal Party, Shadow Assistant Minister to the Shadow Treasurer) Share this | Hansard source

This afternoon we're going to discuss the government's preparedness to safeguard Australia's fuel security amid escalating conflict in the Middle East, and its impact on Australian families and businesses. Before I get to the very, very clear answer about whether or not the government has prepared our country for crises like that in the Middle East—the answer is clearly no, it hasn't—let me share with you what has been happening in our country in the last few days.

Before the 2022 election, Anthony Albanese, then opposition leader wanting to become Prime Minister, made much of the fact that petrol prices in our country were a $1.79, $1.85 and $1.91. But now that petrol prices in Melbourne, Sydney, Brisbane and Darwin, to name a few, are at $2.20, he wants people to be calm. He wants people to be considered.

There is anxiety in the community and panic in the community because the government has failed to reassure people that there is a plan. The government has failed to plan for these types of events. The government has failed to plan for these types of events despite the fact that organisations like the Reserve Bank of Australia have been telling the government for a number of years now that the geopolitical risks to our domestic economy are real and the government must prepare for them. The coalition is committed to protecting Australia's living standards and protecting the Australian way of life, and that is especially the case in times of uncertainty and times of crisis. Australians are right to ask: has the Albanese government been doing enough to prepare our country for certainty, for growing risk and for crises?

It's worth reminding ourselves that the Australian context is unique when it comes to fuel security. Roughly 80 to 90 per cent of liquid fuels are imported into our country, making Australians price takers. We only have two major refineries operational in our country, because of the high cost of doing business in Australia. It's worth noting as well that 83 per cent of maritime imports and 90 per cent of all exports pass through contested maritime routes. This means that the need for planning, the need to foresee future risks and the need to be prepared is more paramount when it comes to delivering fuel security for Australia.

The impact of rising petrol prices will hurt Australian families and businesses. In fact, they are already hurting Australian families and businesses. Rising petrol prices will continue to fuel inflation in our country, which will continue to put pressure on rising interest rates. This is all because the government has more broadly failed to properly manage the economy.

It was just last year that Anthony Albanese and Jim Chalmers, the Treasurer, boldly said that inflation was now under control in Australia. They said to Australian families and businesses: 'There is no inflationary fear that you need to have in Australia anymore.' They have been proven to be devastatingly wrong when it has come to the inflationary experience in our country. More and more Australians are coming to understand that simple economic rule: excessive government spending puts pressure on inflation, which forces interest rates to rise. The RBA governor has said to the government on many occasions that it must be better prepared for the economic risks that arise from geopolitical uncertainty. The RBA has regularly highlighted in its 2025 and early 2026 monetary policy statements that expanded or extended geopolitical risks and policy uncertainties are the key risks to the economic outlook in our country.

The inflationary experience is real for families; it is real for businesses. Unfortunately, it is only going to get worse for them because the government has failed to prepare for conflicts like that in the Middle East.