Tuesday, 02 January 2024 12:17 GMT

Australia Fuel Shortages Worsen Amid Iran War Disruptions


(MENAFN) Australia's government is urging drivers planning long-distance travel this weekend to tank up at city petrol stations before heading out, as fuel shortages tighten their grip across the country in the wake of supply chain disruptions traced back to US and Israeli military strikes on Iran.

Energy Minister Chris Bowen disclosed that hundreds of service stations nationwide have already run dry, with rural and regional communities bearing the heaviest burden, medias reported. Bowen stressed that diesel allocations in the weeks ahead would need to be directed primarily toward farmers preparing for crop-sowing season, and called on road-trippers to ease regional supply pressure by refueling before leaving urban centers.

"It makes sense for Australians planning long trips this weekend to buy fuel in city stations and help the country," Bowen said.

The minister confirmed that more than 50 fuel tankers are currently en route to Australia to shore up supply through April and May, though he cautioned that shortages may persist well into June.

Earlier this week, Prime Minister Anthony Albanese announced a temporary halving of the fuel excise on both petrol and diesel for a three-month period, a measure designed to suppress prices through June 30. Despite the relief measure, the business community has voiced alarm over the depth of the supply deficit.

"Australia burns through roughly 4.5 billion liters a month, so we're not even covering a full month's consumption," said Matt Barrie, executive chairman of Loadshift, one of Australia's largest online freight marketplaces.

"And what happens next month?" he asked, according to media.

Australian media have also flagged that panic buying by consumers has significantly compounded the crisis in a nation heavily dependent on fuel imports.

The underlying disruption traces back to the Strait of Hormuz, a chokepoint that has seen severely reduced shipping traffic since US and Israeli forces struck Iran and Tehran launched retaliatory operations in response. Under normal conditions, the strategic waterway — linking major Gulf producers including Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Iraq, and Iran to world markets — carries approximately a quarter of global oil trade and roughly one-fifth of all liquefied natural gas (LNG) shipments.

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