Canberra – The Australian government announced a $2 billion fund to support fuel import companies. This fund aims to secure supplies in volatile global markets. It will compensate companies for high price differences and storage costs.
The government has started withdrawing from strategic reserves to address supply shortages. A four-stage plan is currently being implemented. This plan includes voluntary consumption cuts and potential rationing if supplies reach critical levels.
Several local gas stations have closed due to diesel shortages. Fuel prices have reached record levels. This situation increases pressure on consumers and the transport sector.
Experts warned that the crisis could last for a long time. The upcoming farming season relies heavily on stable fuel supplies. Data from the Department of Economics shows strategic reserves are low. Australia has 38 days of gasoline and 31 days of diesel remaining. Jet fuel reserves stand at only 28 days.
The shortage directly affects transport and agriculture. Agricultural officials warned that farmers face difficult decisions regarding crop production. High costs and unstable supplies threaten the next season.
Australia has one of the highest per capita diesel consumption rates in the world. The country relies almost entirely on imports for its fuel needs. Only two refineries produce limited amounts of gasoline locally. About 90% of refined fuel requirements are imported.
The government is taking diplomatic steps to improve supply flows. It signed an agreement with Singapore to ensure continued fuel shipments. Australia relies heavily on imports from Singapore and other Asian nations.