Fuel restrictions on the table but ‘not yet’ as WA considers financial help for businesses hit by price hikes

A surplus supply of petrol will be diverted to the Wheatbelt, as businesses count the cost of soaring prices as a result of uncertainty over the war in Iran. The West Australian can reveal that Atlas Fuel has agreed to supply 5 million litres of fuel to regional outlets that have run dry. “That’s fuel which is now flowing into regional communities which need it most,” Energy Minister Amber-Jade Sanderson said. “While we have made a lot of progress, we know challenges remain, and we are seeking greater transparency from fuel suppliers to inform our next steps.” Since the Middle east conflict erupted four weeks ago, the Cook Government has maintained the empty bowsers at some WA fuel outlets are the result of a distribution problem not a shortage due to Iran’s blockade of the Strait of Hormuz. The spot price market for independent suppliers has collapsed, as extra supplies were soaked up by secured contracts. “That’s the market that’s just not working when you see a demand spike, so we’re going to have to look at that in the medium and long term,” Ms Sanderson said. In the short-term she’s refusing to contemplate rationing or Covid-style restrictions on travel and speed, but also refusing to rule it out. In south-east Asia fuel shortages have already forced massive lifestyle changes. In Thailand, civil workers have been ordered to take the stairs instead of lifts powered by diesel. South Koreans are being told to limit showers, Manila has declared a national energy emergency and reduced the working week to four days, while Bangladesh has closed schools early. “They’ll be all of the things that are worked through with the Commonwealth on Monday,” she said. “Our officials are in Canberra this weekend, working all weekend, to work through what the plans would be and what the trigger points would be and, importantly, how we would step through each of those demand measures”. At Monday’s meeting of National Cabinet, the states are demanding a national emergency plan be formulated in case the war drags on - though Anthony Albanese has been reluctant to consider restrictions. Ms Sanderson said they’re not needed - yet. “We’re not there, we have (fuel) supply coming into the country, we have supply coming into WA, what we have are distribution choke points, particularly around the Goldfields and Esperance,” she said. But financial assistance might be considered for businesses under the pump, with fuel surcharges already being imposed by cafes, tradies, cleaners and aged care at home support workers. Victoria and Tasmania have both announced free public transport to “take pressure off the pump”, but WA is yet to follow suit - the Cook Government instead spruiking its $2.80 Go Anywhere Fare that pre-dates the fuel crisis. “We are concerned around some of the inflationary impacts of the fuel price across the economy,” Ms Sanderson said. “It’s something I know the Treasurer is looking very, very closely at”. WA has activated a level one yellow alert under the State Hazard Plan for energy disruption, but Ms Sanderson struggled to clearly state the criteria for a level two alert that would trigger preparations for a potential state of emergency. “There’s no set criteria, it’s based on advice from the hazard management agency,” she said. “But we have been over-prepared, if you like, over the last few weeks and what we have been doing is we’ve been drafting the regulations ready to get to level two and to compulsorily require that information from the fuel companies.” Premier Roger Cook has set a Tuesday deadline for fuel suppliers to volunteer commercial information, around their volumes and distribution points - so diesel can be diverted to areas of urgent need. “By and large that’s happening, but there are still areas in the State where that is not happening,” Ms Sanderson said. She’s talking to the Federal Government most days, meeting with the State’s industry operational group every second day, and speaking to the newly appointed State Controller multiple times a day. But outside forces mean the situation is constantly changing. The Minister’s working day now starts at 5am and the first thing she does is check the news, for the latest on the war in Iran and the potential impact on WA’s fuel supplies. Both she and the global oil price are hanging on Donald Trump’s every word. “We’re all looking to see what he does next, because we’ve seen the impact on the global economy on the decisions he’s making,” she said. “He’s demonstrated that the supply chains are fragile around the world.”