Caps on gas, coal costs on the cards if prices soar
Zac de Silva and Tess Ikonomou |
Australia will consider imposing a cap on gas and coal prices if they skyrocket due to the Iran war, Energy Minister Chris Bowen says.
As Australians head into the Easter long weekend, hundreds of service stations across the country are without fuel.
Mr Bowen said unlike the energy situation following Russia’s full-scale invasion of Ukraine in 2022, gas and coal prices were yet to be impacted by the Iran war in the same way.
“The government will act if we see any increases in gas and coal prices further in Australia,” he told reporters in Sydney on Friday.
“We have planned for a number of eventualities.”
In NSW, there were 182 service stations without diesel and 48 without unleaded petrol.
In Victoria 76 service stations have run out of diesel, with 75 in Queensland.
“Most of the shortages we’re seeing are in diesel,” Mr Bowen said.
“Refineries and petrol companies are working hard to refill that stock over the Easter break.”
The energy minister asked Australians planning a road trip for the Easter break to fill up in the city beforehand, to help out regional and rural areas which were experiencing greater fuel shortages.
Australian Institute of Petroleum chief executive Malcolm Roberts said fuel supplies and imports were stable, as spiking demand for petrol and diesel at the start of the Iran war eased.
“That’s been a bit of an improvement from where it has been, but there’s undoubtedly local short-term problems,” Mr Roberts told AAP.
“The distribution system’s been working overtime for a month now.”
Motorists will get an additional 5.7 cents a litre off their fuel until June 30 as part of a deal between federal and state governments to forgo some GST revenue, Prime Minister Anthony Albanese announced on Thursday.
The move follows a cut to the fuel excise, reducing wholesale petrol and diesel costs by around 26 cents a litre.
Opposition Leader Angus Taylor used a video address on Thursday night to call for a federal budget response to the fuel crisis and again urged the government to be more transparent about the availability of petrol and diesel supplies.
“In a crisis, Australians deserve a government that’s transparent and gives you the facts every day,” he said.
While the price drops may provide some relief, the tourism sector remains under pressure, with motorists anxious about the cost and availability of fuel in some destinations.
Caravan parks more than a few hours away from the city were suffering the most from a decline in bookings, Caravan Industry Association general manager of research and insights Peter Clay told AAP.
“(Travellers are asking) is there fuel available? Is there diesel available where I’m going?” he said.
The cancellation rate for Easter normally sits at about 30 per cent, he said, and that had ticked up this year because of the fuel crisis.
Hotels are also facing a decline in bookings of up to 10 per cent across the east coast capital cities compared to the same time in 2025, Accommodation Australia boss James Goodwin said.
AAP