Energy Minister Chris Bowen warns fuel prices likely to be elevated for ‘foreseeable future’ amid 762 million litre release

Australia’s Energy Minister Chris Bowen has warned fuel prices will remain high for the “foreseeable” future as the government accesses a strategic reserve to alleviate critical shortages in the regions. Appearing on the ABC’s 7.30 Report on Monday, Mr Bowen confirmed this reserve of petrol and diesel would “help with the situation caused by a massive increase in demand.” However, he expected fuel prices will continue to be elevated in the foreseeable future as the extra 762 million litres to be released from fuel company reserves will take “some time for it to flow through, it’s a very complicated supply chain.” “We have worked very closely with companies over the weekend for them to give us an undertaking of that petrol and diesel will flow to regional areas in particular,” Mr Bowen told the program. “But it is going to have an impact in coming days to some degree, but there will be some time before its all released.” Minister Bowen said. It comes amid warnings from One Nation’s Barnaby Joyce that the country’s lack of oil refineries is “going to smack us between the eyes”. As the NSW government holds crisis talks, at least one northwest Victoria town ran out of fuel on the weekend, and the West Australian government has allowed road trains to carry an extra 10 tonnes of fuel. Australia’s reliance on overseas oil refineries for diesel and petrol continues to cause concern for the agriculture and transport sectors as well as the everyday commuter. Appearing head-to-head on Sunrise on Monday, Environment Minister Murray Watt and Mr Joyce butted heads over who’s to blame. “You could see it even in the tenor of Murray’s voice. They have no plan,” Mr Joyce said. “They’re worried and it worries us because it doesn’t matter what Murray says, we just have towns with no fuel.” Senator Watt reiterated lowering the fuel sulphur standards, and releasing hundreds of millions of litres from the nation’s reserves, were immediate steps the government had taken since oil prices spiked on the back of the war in Iran. Speaking on Channel 7, Senator Watt said the government was aware of potential diesel and petrol shortfalls before the Iran-controlled Strait of Hormuz was effectively closed three weeks ago. “The government began work in responding to this as soon as this crisis started. But in fact, we actually began well before that; what we did in coming into office was to lift the reserves of petrol and diesel that we hold in this country,” Mr Watt said. “We’ve got more fuel in the country now than we had when we came to office because, remember, the former government decided to store our fuel in Texas.” As well as a limited supply of economy-driving diesel, having only two oil refineries left Australian farmers vulnerable to drought as well, Mr Joyce said. “The plastics industry, we can’t get plastics in here now,” he said. “And what do we use plastics for? Polyethylene pipe; we’re heading towards the drought – water tanks, so many parts of manufacturing. This is going to smack us between the eyes and there’s been no plan.” The former Nationals deputy prime minister also took a swipe at former environment minister Tanya Plibersek. “It is an economic disaster and it’s going to get worse because you had no plan … the last time I was on here, Tanya was telling us about electric trucks, for goodness sake,” Mr Joyce said. On Monday, the NSW government will hold crisis talks with mayors and transport, agriculture, mining and consumer groups, particularly focused on dwindling diesel supplies in the regions. Over the weekend, the WA government allowed road trains to carry an extra 10 tonnes of petrol, diesel or fertiliser in certain priority regions. These state responses come after the northwest Victorian town of Robinvale ran out of fuel over the weekend, and one of the town’s independent service station owners was forced to enact a $50 limit after a small restock truck had been able to top up his tanks.