The only matter earning more media coverage than the state election this week is fuel security for Australia.
The Chamber has been in the thick of it. On Monday, I was part of an industry roundtable which was convened by Treasurer Koutsantonis and chaired by Premier Malinauskas. This will become a regular Monday morning appointment until further notice. Cathi Buttfield who is the energy specialist in our Policy and Advocacy team will also be joining an SA Government operational update every Thursday.
Regardless of media speculation, the two issues front and centre at Monday’s meeting were supply and pricing.
Our meeting was joined by Minister Chris Bowen from Canberra, and he was at pains to explain that Australia’s supply position for both petrol and diesel was no different to where it had been before the Iran conflict.
Ships expected to arrive in the past two weeks and those on the water due here by end of month have not been impacted.
However, panic buying and stock hoarding to hedge against price increases saw demand more than double in the space of one week in SA. This massive spike occurred against a backdrop of agricultural harvests which would generally see demand increase anyway.
The impact has been felt most in regional areas where diesel pumps have been locked out, while awaiting fresh supplies.
The federal government has taken action by releasing 20% of fuel reserves and relaxing fuel standards, thereby keeping fuel for local supply that would have otherwise only been suitable for export.
Of course, the longer the war goes on, the greater the potential for supply issues in the months ahead. We will be keeping abreast of the situation.
The more pressing issue is the jump in fuel prices that is impacting consumers and business. The ACCC is getting involved, but that is cold comfort for those whose businesses are directly affected through operations, or indirectly as part of their supply chain. The passing on of price increases is not straightforward for many businesses, and often dependent on contracts and place in the supply chain.
All impacted sectors are represented at the roundtable meeting, and the state government is open to ideas and feedback to best manage this situation.
National Cabinet is meeting today, and we hope to see this lead to greater coordination between federal and state governments, and measures that support ongoing reliability of supply and certainty for businesses. Any pricing relief would also be very welcome.
I will keep you updated as to the information we receive and will pass on any relevant member feedback through the appropriate channels.
