Western Australian government has taken a step towards requiring the disclosure of the supply chain of fuel companies.
This invokes the government’s emergency powers under the Fuel, Energy and Power Resources Act of 1972 as the country faces its worst energy supply shock in decades.
It would allow the government to require the disclosure of the supply chain of the fuel companies once the regulations are implemented, which are set to take effect tomorrow.
This move comes after Cook wrote to the fuel companies last week requesting the disclosure of the supply chain of the companies and cooperation with the government’s efforts to redirect the supply of the fuel to areas of greatest need.
State government distinguished between the more general State of Emergency provisions under the Emergency Management Act, which were applied during the COVID pandemic, and these specific fuel supply powers.
The decision comes in line with the National Fuel Security Plan, which was agreed upon this week by National Cabinet, with Western Australia working on it in collaboration with other states and territories.
Under this plan, state and territorial governments will be required to use legislative arrangements to access data from the industry under Level 2 of the escalation framework.
The emergency arrangements will help Western Australia respond under higher levels of the national plan if the situation worsens.
Australia’s fuel security risks have been made glaringly obvious since military strikes carried out by the US and Israel against Iran in late February led to the closure of the Strait of Hormuz, through which 20% of the world’s oil trade takes place.
As a result, oil prices around the world have risen sharply, with Brent crude oil touching a high of $126 per barrel.
Australian consumers have been severely impacted.
Diesel increased to 245.6 cents per litre, while the national average price of unleaded gasoline reached 219.5 cents per litre for the week ending March 15, up from about 169 cents prior to the conflict getting more intense.
Just 36 days worth of gasoline, 29 days worth of jet fuel and 32 days worth of diesel were available in the nation as of late March.
The mining and agricultural industries in Western Australia are especially vulnerable. About 40% of the country’s diesel supply comes from mining alone, and isolated communities throughout the state’s vast interior are at greater risk due to long supply lines and few transportation options.
However, Minister Sanderson conceded that some suppliers had already provided the data voluntarily and a complete picture was necessary.
She emphasized the importance of a complete picture, stating, “We need a complete picture to make sure we’re getting fuel to critical parts of our economy, like our agricultural sector and our mining sector.”
New South Wales has also adopted a similar approach.
On 20 March, Premier Chris Minns declared an energy supply emergency under the Energy and Utilities Administration Act, and Energy Minister Penny Sharpe has moved to force major fuel companies to reveal their supply plans, especially for regional communities.
The Western Australia government has also implemented several measures to reduce pressure on industries reliant on fuel, such as allowing extra weight for road trains, allowing an additional 10 tonnes of fuel or fertilizers to be carried per trip.
Cook claimed that the government would take all necessary steps to safeguard Western Australia’s economic interests during the crisis and presented the decision as a necessary escalation after voluntary arrangements proved inadequate.
