It’s been an interesting week at the Chamber as we unpack the election results and work with members impacted by the cost, and in some cases, the shortage of fuel on their business.
At the end of this note, I’ll update you with what we know about fuel as of today, but on Monday I will be back at the industry roundtable convened by Treasurer Koutsantonis in his capacity as Minister for Energy and Mining to meet every Monday morning until further notice. This is my best direct source of information.
Premier Malinauskas has announced his new Cabinet and for the Chamber, we have a few new faces to be part of our cycle of meetings and briefings. The following are all in our orbit and I have written to them today to set up meetings:
At present, the fuel situation in the metro areas is a cost problem,regionally it is both a cost and in some cases a supply issue.
Key developments:
1. The Prime Minister will convene the National Cabinet on Monday.
• Media reporting that talks are underway to bring states together to create light-touch measures to conserve fuel, which could include voluntary measures on work-from-home and using more public transport.
2. In Parliament:
• Energy Minister Chris Bowen updated members on the fuel shortages state-by-state, noting a reduction in the number of service stations without fuel to 400 nationwide. He ruled out rationing at this stage, as well as a $40 price cap.
3. Port operators are seeking an upgrade to priority status in order to secure the diesel needed to keep moving shipping containers on and off Australia’s docks.
4. The Liberal Premier in Tasmania, and the Liberal Opposition leaders in NSW and Victoria have called for a cut in fuel excise.
• Some economists have criticised the proposal, saying it would be a poor targeting of resources, and would deepen shortages through increased demand. Others have suggested it may be inflationary.
5. Japan’s Ambassador to Australia, Kazuhiro Suzuki, yesterday said that Japan may be willing to help out in a fuel swap: petroleum products for LNG.
If your business is having immediate and real problems with fuel access, please reach out to us HERE
