Panic buying of fuel due to the war in Iran is completely senseless, says Federal Trade Minister Don Farrell.
His comment comes as the Maritime Union of Australia (MUA) calls on Canberra to reduce a dependence on fuel imports.
“We have the largest reserves of airline fuel, petrol and diesel that we’ve had in the last 15 years,” Senator Farrell told ABC News today.
“There’s absolutely no reason at all for people to be panic buying.
“We have ensured that all of those things have been increased over the last few years and there will be no shortages,” he says to reassure against panic buying.
Sen Farrell also believes Australian exporters’ exposure to supply disruption in the Arabian Gulf will be minimal, affecting about $15 billion of trade.
He says his recent talks with US trade counterparts have focused on a new 15% US global tariff slapped on Australian exports.
A GUARD AGAINST PANIC BUYING
Australia’s fuel security has been exposed by the war and the closure of the vital Strait of Hormuz, the MUA says.
It points out that a fifth of the world’s oil moves through a single maritime corridor which has now been shut.
“The closure of the Strait of Hormuz during the recent attacks on Iran is a stark warning of the volatility of Australia’s access to global fuel supply chains,” says union national secretary Jake Field.
“We mustn’t gamble our economic stability on uninterrupted access to foreign fuel markets. We cannot assume that geopolitical tensions will always resolve before our reserves run dry,” he says.
The MUA wants Australia to get back its fuel stores that have been stored offshore so it can maintain domestic reserves far above international minimums and to expand domestic refining capability to reduce reliance on imports.
“We must realise the commitment of an Australian flagged and crewed strategic shipping capability that can guarantee delivery of essential energy supplies in times of crisis,” Field says.
“Fuel security must be recognised as a pillar of national security, economic policy and social stability.”
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