Senate

Answer from Penny Wong

The minister reported that National Cabinet had convened to address fuel supply and chain issues stemming from the Middle East conflict. A National Fuel Security Plan was adopted to coordinate responses across governments, currently operating at level 2 to keep Australia moving, with capacity to escalate to levels 3 and 4 if necessary. The minister emphasised that responsibilities span Commonwealth, state, and territory governments, as well as industry partners, with a commitment to working together to maintain economic activity.

Answer from Penny Wong

The minister stated that Iran's weaponisation of the Strait of Hormuz was creating a major disruption to worldwide oil and gas availability, impacting prices globally. National Cabinet agreed to the National Fuel Security Plan to coordinate a consistent, staged response across all levels of government. The plan aims to keep the community updated and encourage voluntary fuel reduction to direct more supply to regional areas under pressure.

Answer from Penny Wong

The minister highlighted the government's focus on securing additional fuel supply through Export Finance Australia underwriting powers for private-sector purchases. This measure was designed to de-risk shipments and boost supply for agriculture and regional communities. The minister reiterated that the National Fuel Security Plan facilitated cooperation between state and territory governments to address these supply chain impacts.

Answer from Penny Wong

The minister welcomed state initiatives for lower-cost public transport, noting that reduced urban fuel usage helps address regional distribution challenges. She outlined the government's substantial package, including fuel excise reductions and heavy vehicle charge changes, as the primary response to high prices. The minister also criticised the Greens for not condemning Iran's actions in the conflict.

Answer from Tim Ayres

The minister confirmed that legislation to enable Export Finance Australia to underwrite extra fuel and fertiliser cargoes would be introduced. This measure aimed to de-risk private-sector shipments and address regional shortages without replacing domestic market operations. He also noted the government's intervention to keep the Dyno Nobel Phosphate Hill facility operating as a domestic fertiliser producer.

Answer from Tim Ayres

The minister stated that tax policy announcements would be made in the budget, but the government's focus remained on delivering tax cuts for every taxpayer. He argued that intergenerational equity was addressed through these tax cuts and that the government's housing agenda focused on increasing supply through the Housing Affordability and Future Fund and other measures.

Answer from Penny Wong

The minister confirmed that jet fuel was a focus area and that the government was engaging with international partners and industry to secure alternative supplies. She noted that jet fuel was subject to the minimum stockholding obligation, which helped ensure reserves were held to deal with supply constraints. The National Fuel Security Plan included provisions for working with states and territories on jet fuel distribution.

Answer from Penny Wong

The minister listed recent actions, including releasing areas in Northern Carnarvon, Browse, Otway, and Sorell basins for offshore exploration and granting five offshore exploration permits since 2022. She argued that the government did not hold an ideological view against fossil fuels but sought diverse options for energy security, including renewables, while noting that some previously advocated exploration projects were not commercially viable.

Answer from Penny Wong

The minister confirmed that bans were in place on importing Russian fuel to avoid supporting the Russian war machine. She explained that it was difficult to ascertain the origin of substantially transformed products but that the government encouraged supply chain disclosure and assurance from importers. The minister strongly disagreed with the member's support for the Russian regime.

Answer from Penny Wong

The minister expressed sympathy for those affected and highlighted the release of 20 per cent of minimum stockholding obligations targeted at regional Australia. She noted that Export Finance Australia was underwriting additional supply and that the government was working with states and distributors to address distribution issues. The reduction in fuel excise was also cited as a measure to assist with costs.

Answer from Katy Gallagher

The minister detailed actions including doubling penalties for price gouging, releasing 20 per cent of fuel reserves, adjusting fuel standards, and appointing a national Fuel Supply Taskforce Coordinator. She announced a halving of the fuel excise and cancelling the heavy vehicle road user charge for three months. Bills were introduced to allow Export Finance Australia to support overseas sourcing and to provide an additional $2 billion advance to the finance minister for fuel security measures.