Japan ‘could’ help Australia with fuel crisis, ambassador says

Japan “could” help Australia with the fuel crisis but would need absolute clarity on shortages, Tokyo’s envoy in Canberra says.

It came after Anthony Albanese stepped up talks on Asian fuel supplies following the cancellation of several fuel tankers bound for Australia next month.

“We are talking with our partners in Korea, in Japan, in China, in Singapore,” the Prime Minister told parliament earlier this week.

“We are engaged, we are reliable partners when it comes to energy security, and we expect that to be a two-way flow.”

Speaking at a Minerals Council of Australia event in Canberra on Wednesday, Japanese ambassador Kazuhiro Suzuki said his government was willing to help Australia but that 250 days of reserve fuel would be prioritised for its domestic needs.

“We really need to see the market situation in Australia first and then we need to deepen our communication between the two countries,” Mr Suzuki said, noting reports of panic buying.

“Maybe we could collaborate and then do something together. That’s the only answer that I can give to you now.”

Australia imports 90 per cent of its fuel, with most of it coming from refineries in Asia, including some from Japan.

Those refineries in turn largely rely on oil from the Middle East, which have been blocked by the war in Iran.

This week, it was revealed eight per cent of service stations in Australia, or as many as 560, were without one or more grades of fuel.

The Albanese government has insisted Australia’s foreign supply has not been disrupted and that shortages at service stations across the country were sparked by distribution issues.

The government last week announced a fuel co-ordinator to work with states, territories and the private sector to resolve distribution errors.

‘Making excuses’

Earlier, the opposition accused Labor of “making excuses” about fuel shortages after Housing Minister Clare O’Neil told Seven’s Sunrise more fuel was circulating the Australian market than prior to the war in the Middle East.

She said shortages had been caused by spikes in demand rather than supply shortages.

“The issue that we’re having is that in certain parts of the country, demand has spiked up to threefold … and I don't downplay it,” Ms O’Neil said.

“If you're in a regional town and your local petrol station is out of petrol, this is one of the biggest issues in your life right now.

“What I can tell you is that nationally, we have the fuel circulating in the economy that

we need.

“There are distributional issues, which we are working through with states and territories.”

Pressed on when those issues would be worked through, Ms O’Neil again pointed to rising demand creating “inevitable challenges” for the economy, before saying: “The government is doing exactly what is needed right now.”

Shortly after, host Nat Barr tried to move on, before being abruptly interrupted by Senator Cash.

“With all due respect, Nat, that is the biggest load of crap I have ever heard,” she said.

Senator Cash said Ms O’Neil had “admitted on national TV that there is so much fuel sloshing around in this country (that) they don't know what to do with it”.

“Well, Clare, I can tell you what to do with it. You have the granular detail. You have just

admitted on national TV, there is not a supply problem, but bowsers are dry,” she said.

“There's 166 in this country that are dry. You can get tankers today to those 166 stations.

“Stop making excuses. Stop treating the Australian people like mugs.”

Ms O’Neil fire back by accusing Senator Cash of “twisting” her words.

“No one is saying that there are not significant issues facing the country with fuel right now,” Ms O’Neil said.

“What we need to do is manage this calmly and methodically, not get personal and hysterical.

“The way that the government needs to manage this is making sure that we need that we've got the fuel in the country that we need.

“That is the case today, and for us to calmly work through issues across the supply chain, that is exactly what the government is doing.”

Ms O’Neil was earlier quizzed on a $40 fuel cap as part of rationing measures in the national fuel emergency response manual, as reported by The Daily Telegraph on Tuesday.

The measure would see petrol pumps turn off after users hit the $40 limit and can only take effect under a national liquid fuel emergency declared by the governor-general at the advice of Energy Minister Chris Bowen.

But Ms O’Neil played down the contents of the manual – obtained through a freedom of information request – and described it as “not a current document”.

“ … And it's not something that's being actively considered at the moment,” she said.

Minns says no fuel cap plans ‘today’

NSW Premier Chris Minns said people shouldn’t make “dangerous” decisions by taking “excess fuel and bringing it home”.

“The implications of that for your neighbours, for your family, for your co-workers and for your employees could be devastating. We need people to show common sense,” Mr Minns said.

“I want to be honest with the people of NSW … there is enough fuel on the island of Australia to keep the economy going.”

When asked whether the government was contemplating the introduction of a $40 fuel cap, Mr Minns said it wasn’t a part of the plan “today”.

“We’re not contemplating that. We’ve got reasonably detailed, graduated plans if the circumstances worsen in the weeks ahead … that’s not the plan today.

“We’re not proposing Covid-style emergency powers. We’re being sensible about this and preparing for the future.”

Drivers should switch to ethanol-blended fuel

NRMA spokesman Peter Khoury said e10, or “ethanol blended fuel,” was safe for use in most cars in Australia despite a historical reluctance by Aussie drivers to rely on it.

“It always has been (safe), and unfortunately when you go back to when the mandates were first introduced … there was a lot of campaigning against it, particularly from the oil companies,” Mr Khoury said.

The NSW government first introduced fuel mandates in 2007, which forced fuel sellers to ensure that ethanol accounted for at least 2 per cent of their petrol volume.

“I’d like to think that as we sit here today talking about fuel security and fuel supply that they perhaps reflect on that period of their history, because unfortunately some Australians still think that they can’t use it. Most cars can,” he said.

“It’s safe to use, it’s used everywhere overseas. It’s also used in higher volumes than we use here … some parts of the US have E15 … we know that Japan is moving to E20.”

Ethanol is produced domestically and also considered more environmentally friendly than standard oil-based fuels.