Chris Bowen warns US–Israel–Iran conflict disrupts fuel shipments to Australia via Strait of Hormuz

Energy Minister Chris Bowen says some oil shipments to Australia have been cancelled since the start of the US-Israel-Iran war.

He said six of 81 shipments have been cancelled or delayed amid the energy crunch prompted by the de facto closure of the Strait of Hormuz.

Speaking on ABC Insiders on Sunday, the Labor frontbencher said the canned contracts had been predominantly from Asian markets.

He said Australia had sought to make up the shortfall from Mexico, the US and Malaysia.

“We get, on average, around 81 boats a month delivering fuel to Australia. We’re aware of six boats that have been cancelled out of that 81, on average,” he said.

“Some of those have already been replaced by the importers and refiners with other sources.”

“It’s a matter of the refineries seeing some supply problems with their crude oil.

“I’ve always been clear, we’re in an uncertain environment.”

Despite admitting there had been issues with the shipments, Mr Bowen said Australia’s fuel reserves had actually lifted to 38 days, up from 36 earlier this month.

It comes as the Albanese government rolled out a suite of measures to improve the reserves.

Mr Bowen had late last week moved to unlock up to 762 million litres of petrol and diesel from emergency reserves to meet regional demand to help ease chokepoints, particularly in regional communities.

The government has also temporarily relaxed sulfur fuel standards for 60 days to allow an extra 100 million litres of fuel to stay in the domestic market rather than the supply being exported to be blended.

The redirected supply will be prioritised in the regions where there are shortages.

Anthony Albanese also appointed a national fuel coordinator, former Australian Energy Regulator boss Anetha Harris, to help oversee the distribution to regional areas.

Mr Bowen also said while Australia has two refineries running at “full pelt”, he admitted, it “would be better if we had more”.

“We still have two refineries working full pelt – would be better if we had more, sure – but we do have two and we also have the boats continuing to arrive,” he said.

Mr Bowen was also asked about a string of drastic measures released by the International Energy Agency on Friday to allow Australia to preserve its energy supply.

The measures, which could be implemented swiftly by governments, businesses and households to ease the burden, included mass working from home, avoiding air-travel, reducing highway speeds by at least 10km/h and registration plate rotation schemes to limit the days motorists drive.

Mr Bowen said Australians working from home more would be a “sensible thing to do” amid the crisis and “people would already be looking at options”.

“I think that’s a sensible thing to do in any environment, really. Work from home has become an important part of Australian working life. And again, I think some people would already be doing that,” he said.

“I think people would already be looking at their options to minimise their fuel use at the moment.”

He also added that all plans and contingencies were being explored by government when asked if fuel rationing was on the horizon for motorists.

He again reiterated that Aussies shouldn’t panic-buy fuel and urged them to only take what they need.

“We’re sending the message to Australians that please buy as much fuel as you need but no more, no less,” he said.