Richard Dowling (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Wong. Iran is holding the Strait of Hormuz hostage, attacking or threatening to attack merchant and civilian vessels and putting the lives of seafarers at risk. Can the minister explain how Iran's dangerous and destabilising actions are impacting global energy markets and Australia's energy supply chains?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I thank the senator for his question, and I also express my welcome to our friends from the Philippines. Whilst conflict in the Middle East is sadly not a new development, the world has never before seen the Strait of Hormuz choked like this. As we know, the strait is one of the word's most important trade passages. It would normally carry around 20 million barrels of oil per day, but, due to Iran's weaponisation of the strait, we are now seeing less than 10 per cent of that get through—10 per cent. The majority of Australia's refined fuel comes from the Asian market, which is heavily exposed to Middle Eastern supply. This is how we are being affected, through the knock-on effect from the reduction in supply to the refineries of Asia, from where we get our liquid fuel supplies. That is what we are feeling domestically.

Many Australians have seen Iran's attacks on the strait and its threats to set fuel tankers ablaze and have rushed out to stock up on petrol. We understand why. There has been a huge surge in demand, even before those knock-on effects fully arrived on our shores. We've all seen the videos online of drums being filled up with petrol and of jerry cans flying off the shelves. That is why the government has been urging Australians to try to only use what they need. That surge in demand, combined with logistical challenges across the supply chain, is now contributing to instances where petrol stations run out of fuel. We understand the scale of this problem. We understand the depth of feeling across Australia. It is why the government has acted early and why we are focused on it—why we are determined to support houses and businesses through this uncertainty.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Dowling, first supplementary?

Richard Dowling (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

As the minister has said, Australians are seeing petrol stations experience temporary shortages due to increased demand, and they are understandably concerned about access and affordability. What message does the government have for households who are worried about this unprecedented disruption in the Middle East, and what does that mean for their day-to-day lives?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

The Australian government is looking at every practical measure to shield Australians from the worst of this global uncertainty, and we understand that there are many Australians who are being impacted, particularly in regional Australia. The Prime Minister has advised that National Cabinet will convene again next week to further coordinate activity we are taking to ensure national consistency. Our refineries here in Australia are operating at full pelt, and we are making sure fuel made here is used here in Australia. We've released 20 per cent of our diesel and fuel reserves to help address regional shortages and we've amended fuel standards to get more into the market. The new Fuel Supply Taskforce is driving coordination across the country on fuel security and supply chain resilience. We know there is more to do, and our message to Australians is this: the Albanese government will do everything we can to help you access the fuel you need.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Dowling, second supplementary?

Richard Dowling (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

Minister, as you've indicated, Iran's attacks and its chokehold on the Strait of Hormuz are affecting global energy markets and our partners in Asia. Can the minister provide an update on Australia's international engagement and what we are doing with international partners to respond to the situation?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

Thank you, Senator. The government have spent every day since we came to office working to strengthen our international relationships, particularly in our region. We're working together to respond to this unprecedented shock to the global economy, including by engaging with the Republic of Korea, Malaysia, Singapore, China, India and Japan.

Earlier this week, Australia and Singapore agreed to a joint statement to strengthen energy supply-chain resilience and help ensure the continued flow of essential fuels. As Minister Bowen has outlined, the six ships he reported had been cancelled have now been replaced, and suppliers are continuing to secure more cargoes, with three more this week. The Albanese government is focused on ensuring Australia gets the supplies we need, including petrol, diesel and fertiliser, and that those supplies can get where they are needed.