Australia will only know whether a fuel shipment is on its way four to six weeks ahead of time, Anthony Albanese has revealed. <\/p>\n
Spruiking his government\u2019s action to secure fuel supply on the ABC on Thursday, Mr Albanese revealed for the first time companies work on a four to six week time frame for fuel shipment contracts. <\/p>\n
\u201cWe will know in advance along that sort of time frame if there is a real reduction in the amount of fuel that will be available,\u201d he said.<\/p>\n
\u201cEach four to six weeks in advance we will know where we\u2019re at, say next week we will know where we will be in four to six weeks time from that.\u201d<\/p>\n
The Prime Minister met with state and territory leaders earlier for national cabinet, the first since Iran, Israel, and the United States\u2019 ceasefire came into effect.<\/p>\n
Speaking to the media, Mr Albanese said Australia\u2019s supply outlook \u201cremains secure in the near term\u201d, though the government was working to prepare contingences in the event of further disruptions to fuel and fertiliser. <\/p>\n
The Prime Minister thanked Australians for \u201cvoluntary\u201d changes in behaviour which, he said, had contributed to petrol reserves growing to 46 days.<\/p>\n
Reserves are now about 51 per cent of the International Energy Agency minimum of 90 days, but are higher than the 36 days held when the war broke out on February 28.<\/p>\n
However, Mr Albanese said that even if the conflict ended immediately and the Strait of Hormuz was fully reopened, Australia would still face a \u201ctime lag\u201d before the economic consequences of two months of conflict \u201cflow through the system\u201d.<\/p>\n
\u201cIt takes time to clear the strait to make it safe,\u201d Mr Albanese said.<\/p>\n
\u201cIt will take time for the ships that have been stuck in the Gulf to reach their destination, to unload and then to travel back to receive more supply. <\/p>\n
\u201cSo, there will be a long economic tail here.\u201d<\/p>\n
Currently, six cargo ships are en route to Australia carrying more than 300,000 litres of diesel.<\/p>\n
Mr Albanese said the federal government would \u201cdo what we can\u201d to determine if future cargoes might become available for purchase on the spot market.<\/p>\n
The Prime Minister also touted the government\u2018s diversification of its fuel supply.<\/p>\n
The United States, not traditionally a big fuel supplier, is supplying about 18 per cent of imports, Mr Albanese said. <\/p>\n
Argentina, \u201cvery small indeed\u201d, is now \u201cinto double figures\u201d, he added. <\/p>\n
Algeria, in North Africa, was also supplying fuel to Australia. <\/p>\n
Energy Minister Chris Bowen said Australia still faced \u201cinternational headwinds\u201d and risks and uncertainty in the medium term.<\/p>\n
\u201cNothing is being left on the field when it comes to ensuring that Australia is very well placed,\u201d he said.<\/p>\n
\u2018Some good news finally for motorists\u2019<\/b><\/p>\n
Prices continue to tick down heading into the Anzac Day weekend.<\/p>\n
Speaking in Sydney on Thursday, NRMA spokesman Peter Khoury said wholesale spot market fuel prices were coming down, as were prices at the pump.<\/p>\n
\u201cWholesale prices have been falling steadily now for a few weeks,\u201d Mr Khoury said.<\/p>\n
\u201cDiesel has fallen a dollar a litre, the wholesale price and in the last three weeks and unleaded has fallen by 70 cents a litre so we are now starting to see those prices flow onto the bowser.<\/p>\n
\u201cIt is very clear that we\u2019re in a better position than we were a couple of weeks ago and that should continue into the long weekend although looking at what is going on over the Middle East who knows how long that will last.\u201d<\/p>\n
NRMA analysis of petrol station prices showed \u201cthe majority\u201d of retailers were in the lower 50 per cent of prices, and half of Sydney servos had unleaded for less than $1.90.<\/p>\n
\u201cWe\u2019re seeing some positive news for Australians as we\u2019re getting ready for the Anzac Day long weekend,\u201d Mr Khoury said.<\/p>\n
\u201cWe are seeing a good spread of prices compared to where we were a couple of weeks ago.<\/p>\n
\u201cObviously, we are way off where we were before this conflict began, but at least prices for the last couple of weeks have been heading in the right direction.\u201d<\/p>\n
Mr Khoury also urged motorists to shop around on fuel price apps.<\/p>\n
Near-miss on $3.90\/L diesel<\/b><\/p>\n
Modelling on April 9 showed diesel prices in Australia should have hit $3.90 a litre, analysis by Primera research shows.<\/p>\n
\u201cThe only thing that stopped it was fuel retailers quietly destroying their own profit margins, collapsing to just 1.7 per cent (normal is 9.8 per cent) to keep prices from going through the roof,\u201d Primera managing director Robert Beerworth said.<\/p>\n
The federal government slashing fuel excise temporarily staved off astronomical prices, as did the three-month pause on 32 cents-per-litre heavy vehicle road user charges.<\/p>\n
\u201cOn July 1, a temporary federal excise cut expires. That\u2019s an overnight price jump of around 32 cents a litre \u2026 Diesel moves every truck and every delivery in the country. When its price goes up, so does everything on the shelf,\u201d Mr Beerworth said, adding the threat of $3.90-per-litre diesel had not evaporated.<\/p>\n
\u201cThe $3.90 moment passed. But the costs that prevented it didn\u2019t disappear; they were deferred. Margin recovery is bringing them back slowly. The July excise cliff brings them back all at once,\u201d he continued.<\/p>\n
Retailer profit margins are increasing again.<\/p>\n
\u201cThe absorbed costs are finding their way back to the pump,\u201d he said.<\/p>\n