Fuel supply and prices about to hit a critical point

The Shadow Minister for Energy Dr Steve Thomas says the disruptions to fuel supply in Western Australia are about to hit a critical point as the war in the Middle East approaches the one-month mark.

“The reliable delivery of fuel has been impacted, and the price at which it can be delivered has skyrocketed” Dr Thomas said.

“This is especially obvious in regional areas and in agriculture, which are both being hit hard.

“Unfortunately, without a resolution in the Middle East this is about to get worse, and that may force the State Government to use its powers under the Fuel, Energy and Power Resources Act 1972 to have the Governor declare state of emergency, which will allow the Government to manage fuel distribution.

 “This has now become an issue of timing, because up until now the fuel hitting our tanks and tractors had left the war zone at least a month ago.

“That crude oil takes two to three weeks to reach the refineries in South East Asia – especially Singapore, South Korea, and Malaysia.

“Once refined to usable products, it takes another one to two weeks to reach Western Australia.

“Given that the countries that refine the oil that we need get up to 70% of their crude from the Middle East, they are about to face a dramatic shortfall which will have to flow on to Western Australian fuel users.

“This means that the price of diesel, which has effectively doubled in a month, will go higher again.

“More importantly, the simple ability to get fuel to where it is needed is likely to continue to get harder.

“And at some point, those countries that refine our oil into fuel will have to start looking after the interests of their own citizens first.

 “I suspect the State Government is waiting until the crisis get worse before using the legislative powers they have to act, but I think that time is rapidly approaching” Dr Thomas said.