Lisa Darmanin (Victoria, Australian Labor Party) Share this | Hansard source

I wanted to try and take some of the hyperbole out of the debate that we have been having today and really provide assurance to Australians about what's happening, because it is, no doubt, an unfortunate situation. We just need to remember that what started this was that, on 28 February, the US and Israel launched air strikes on Iran, and Iran launched missile strikes in the Middle East. In Australia, the largest component of what we pay at the pump and the supply of our fuel is the global fuel price and the global market. It is obvious but still worth acknowledging that, of course, this is a very difficult and stressful time for Australians. No-one wants to see uncertainty over supply. Unfortunately, however, this international setting continues to make everything unpredictable.

There has been a lot of talk today in the chamber about the supply of fuel and our approach to this. What is absolutely worth noting is the impact of events outside our borders and outside of our control and what those things have on the supply of fuel in this country and how we can build resilience against that. Senator Antic talked a minute ago about what is predictable. What assurance I can provide to people is what we know is predictable. There are two things that are predictable. That those opposite are continuing to create panic around fuel supply in this country—that is predictable. The second thing that is absolutely predictable and that Australians should be really taking notice of is that this government is working every day around the clock to provide steady and sustained assurance for Australians on supply of fuel.

Australia is an island nation, and it is prudent to consider what we would do if the ships were unable to arrive, and we have considered that scenario. I want to talk about what has changed as a result of that. In 2023, this government introduced the minimum stockholding obligation, the MSO. It requires petrol, diesel and jet fuel reserves to be held here in Australia for our security in times of disruption—a bit like this right now. This differs from the International Energy Agency's 90-day requirement, which pertains to emergency oil stocks which can be held both locally and overseas, but, because Australia is an island nation, we need to account for the reliance that we have on freight, which arrives by sea. The government is monitoring shipping data in real time.

Before we introduced the MSO, what we considered our reserves were stored in the United States. That is hardly a source of relief in a crisis. Now, those reserves are held here in Brisbane, and they are in Geelong. By focusing on the fuel which is literally here in Australia, the MSO is a far more practical measure of our domestic fuel security. The MSO is a key measure of our domestic fuel security. It ensures we have a basic level of supply during disruptions, and we are currently above the minimum stockholding obligations, and we have boosted supply by releasing 20 per cent of the baseline of the MSO for petrol and diesel. That is the fact of what is happening right now.

The government is also working closely with industry and states and territories to ensure that this fuel gets to where it is needed most, particularly in regional communities. Of course, these measures of security do not negate the influence of international events on our fuel. We need to ensure we are resilient to the global shocks, and, in times of instability, a system designed to help us maintain basic supply is not allowing us to continue business as usual. To achieve business as usual amid instability, we need to look at alternate options as well. When we exist in a global supply chain, there will be events outside our control which disrupt that chain and, therefore, disrupt our access to goods within it. Ensuring access to fuel amid those disruptions is part of that parcel.

However, another really important parcel of that work is reducing our reliance on that supply chain. That is just another reason why investing in clean energy is so important for Australians. We've established a $5 billion net zero fund to help industry decarbonise. We have invested $1.1 billion to encourage more production of clean fuels right here in Australia, and our $22.7 billion Future Made in Australia package will help us become a renewable energy superpower. We are continuing to take decisive actions that will help in this immediate, urgent situation, but also well into the future. (Time expired)