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

My question is to the Minister representing the Treasurer, Senator Gallagher. The conflict in the Middle East is disrupting global supply chains, impacting the ability to purchase fuel on the global market. This is driving up fuel prices and compounding cost-of-living pressures. How is the Albanese Labor government delivering timely and meaningful relief to households and businesses, and how will the government's decision to temporarily lower the fuel excise deliver further relief?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I thank Senator Dowling for that question on the topic that is attracting a lot of attention from households right across Australia as they deal with the impacts, as Senator Dowling said, from the conflicts in the Middle East and the consequences they're having on the fuel markets. The Middle East conflict has caused real disruption, and Australians are feeling it at the bowser and beyond. But we, the Albanese government, have worked hard to make sure that we are responding in a timely and coordinated way to deal with the consequences of that conflict. We have passed new laws to double the penalty for petrol companies that engage in price gouging, misleading conduct or cartel behaviour; we've released 20 per cent of Australia's fuel reserves, targeted to ease pressure in regional markets and protect supply for critical users; we've temporarily adjusted petrol and diesel standards; we've engaged with international partners and suppliers to support continued shipments; and, of course, we've established the Fuel Supply Taskforce to drive whole-of-government coordination—and we've provided some financial counselling support for impacted farmers because we know that pressure is hitting there hard.

Yesterday, the government took further action, including cutting the fuel excise by half and reducing the heavy vehicle road user charge to zero for three months. We've also introduced bills to ensure the government can respond quickly to any urgent and unforeseen fuel supply challenges that may arise. National Cabinet, yesterday, agreed to the National Fuel Security Plan, which has four clear areas: the first is 'Plan and prepare'; the second is to keep Australia moving, which is the stage we're currently at; the third stage is 'Taking targeted action'; and the fourth is 'Protecting critical services for all Australians'. So we are looking at how we can support industry, business and households and make sure there's a continued coordinated response across all governments across Australia as we deal with the impacts of the conflict from the Middle East.

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

The government is clear that fuel retailers must not use global uncertainty to increase their margins at Australians' expense. How is the government protecting consumers and motorists and ensuring fair pricing at the bowser?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I thank Senator Dowling for that question. It's an important one. The Treasurer has tasked the ACCC to ramp up fuel price monitoring, reporting weekly, with a focus on unusual price spikes. We've also empowered the ACCC by doubling penalties for false and misleading conduct and cartel behaviour, with legislation that passed last week.

The ACCC itself has been very clear about targeting misconduct in the fuel sector. They've also announced they're investigating major fuel companies over allegations of market misconduct. Indeed, last month, before the crisis began, they secured a $16 million fine against Mobil for making false or misleading representations around fuel. The ACCC also brought in the fuel companies, into an urgent meeting, to explain their pricing conduct. This focus is really important, and we'll continue to make sure that the decisions we've taken will flow on to motorists, when they go and fill up their car, once that excise comes off.

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

In a volatile global environment, Australians need confidence in the security and reliability of our fuel supply. What is the government doing to secure Australia's fuel supply and strengthen reliability amid ongoing global uncertainty?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I also thank Senator Dowling for that question, because supply has been a priority, and focusing on supply has been a priority for the Albanese government since this conflict began. Indeed, there's legislation that will come to this place later today to ensure that Export Finance Australia can help industry source additional cargoes overseas. It will do that by making sure there are new powers to keep fuel flowing for Australians by underwriting the purchase of fuel by the private sector.

Already there are discussions happening with local and international fuel suppliers to help firm up and source new cargoes to ensure we're getting the fuel we need when it's needed and where it's needed. It will mean that, in cases where it would be cost prohibitive for private suppliers to source fuel on commercial terms, the government will provide that additional support. It won't subsidise fuel that importers have already contracted to supply, but it will give suppliers confidence to secure additional and discretionary cargoes, which will be used to service uncontracted demand, including regional and independent fuel suppliers.

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

Thank you, Minister. Senator Hume.