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Australia has not yet tapped its reserve supply of jet fuel, the Transport Minister has said.
Speaking to ABC Radio National, Transport Minister Catherine King said Australia is still continuing to receive necessary imports for jet fuel. It comes as Australia maintains 30 days’ worth of supply, according to figures released by Energy Minister Chris Bowen.
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“We continue to receive the amounts that we have done previously, we’ve still got the minimum stockholding. We didn’t draw down on that at all. We only drew down on the stockholding for diesel and petrol. So that minimum stockholding obligation for jet fuel remains,” said Minister King.
“Things remain steady, but there is no doubt that the price of jet fuel, the price of diesel, the price of petrol is having an impact on businesses.
“You’re seeing various responses to that both internationally and here domestically. And the longer this goes on, the more those impacts are being felt.”
According to the Transport Minister, we are “seeing the world adjust already” to Iran’s effective closure of the Strait of Hormuz, which handles around 20 per cent of the global oil supply.
“Many of the suppliers of oil are seeking alternate markets, seeking alternate routes, and that is all working its way through the system. At this stage, as you’re aware from the Climate and Energy Minister, our supplies remain as they were when this conflict started,” she said.
“We are obviously watching and monitoring that very closely to prepare for the longer – obviously the Strait is closed, the longer the war continues, then the longer the impacts are on our economy and our domestic supply.
“But at this stage, as of today, we continue to receive the amounts of oil and then are able to refine that here in this country, in the same way we have done previously.”
Both Qantas and Virgin Australia have increased airfares due to higher fuel costs amid the Gulf crisis, while Air New Zealand has been forced to cut flights and Jetstar has pared back NZ services.
Speaking to Sunrise last Wednesday, Minister King warned major airlines that the crisis should not be used as an excuse to price-gouge.
“The ACCC is already monitoring airfares, and the airlines are on notice. This isn’t an opportunity to make a commercial gain out of this,” she said.
“We understand that fuel costs have gone up and some of that will be passed on in ticket prices, but you’ve got to justify that, and the ACCC is watching that very carefully.”
The price of jet fuel has spiked dramatically since the Iran conflict began on 28 February.
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