WA cooks up a 7-point plan to secure fuel for farmers, miners and regions, but insists there’s no crisis

A seven-point plan has been announced to safeguard WA’s petrol supplies after some outlets started rationing and industry groups warned Roger Cook that farmers and small miners were within weeks of running out.

Price caps have been ruled out, but retailers have been told to use “common sense” to stop panic buying.

The Premier had accused the Opposition of fuelling anxiety and a “pathetic” attempt to politicise the issue.

But after a 90-minute fuel security roundtable, he emerged with a plan to combat regional shortfalls that he blamed on a spike in demand.

“BP Australia informed us that, at the moment, all their international supplies are functioning perfectly,” Mr Cook said.

“They said they have 18 ships on their way to Australia as we speak.”

But there was no guarantee if the conflict drags on too long.

“They said they have a very high level of confidence at least until April,” he said.

One petrol station in York was already limiting customers to 50 litres of fuel each, while farmers have reported their contracts are only being partially filled and tractors are running dry.

After a 90-minute fuel security roundtable, Mr Cook said fuel and fertiliser shipments would be given priority at ports, suppliers would fast-track restocking of priority regional areas and retailers would take “immediate” action to stop stockpiling.

But a strict limit won’t be applied.

“It would be a common sense approach and each will take their own approach,” Mr Cook said.

“One (roundtable attendee) knew of a retailer that even though he operated a 24-hour facility, he just pushed the emergency-stop button overnight just to stop any nefarious behaviour.”

The Government’s seven-point plan also promised to co-ordinate with the Commonwealth, improve messaging to reassure the public, use bigger and longer road trains to move more freight, and convene a new industry operational group.

The group will meet for the first time on Thursday.

“To look at specific shortages or supply-chain constraints,” Mr Cook said. “This group will meet two to three times a week”.

About 40 people attended the State Government’s roundtable, that Chamber of Minerals and Energy boss Aaron Morey called “very productive”.

But farmers were still worried, despite the assurance supplies are on their way.

“If we run out of diesel, we run out of water, crops are finished,” WA Potatoes chief executive Simon Moltoni said. “And we’re talking immediately. Days, not weeks or a month away. So we do have concerns. We were very pleased that the Premier called the meeting today.”

Association of Mining and Exploration Companies chief executive Warren Pearce warned some explorers and smaller miners were at risk of running out if action wasn’t taken urgently.

‘If they don’t have fuel, the short answer is the mining and exploration industry stops running,” he said.

Western Roads Federation chief executive Cam Dumesny welcomed the Premier’s promise to prioritise delivery to the regions.

“Supply’s coming in. It’s just this demand surge that’s created another version of the great toilet paper crisis of 2020,” he said.

It was revealed a Government department was directing its staff to fill up, even as the Premier warned against panic buying to avoid predicted price hikes.

The Opposition produced a WA Country Health Service memo telling staff in the State’s South West that the minimum fuel level for work vehicles was being increased from a half-tank to three quarters “effective immediately”.

Staff travelling out of town were ordered to depart with a full tank, because “fuel availability at your destination cannot be guaranteed”.

The Premier urged drivers to shop around, as Federal Treasurer Jim Chalmers vowed to double penalties.

Oil companies and petrol suppliers are set to face $100 million fines if caught price gouging, as the Federal Government promised to beef up surveillance.

“The conflict overseas shouldn’t be an excuse to profit off Australians,” Mr Chalmers and Energy Minister Chris Bowen said. “We’re putting petrol companies on notice. We won’t cop big corporates treating Australian consumers like mugs.”

One of the retailers summoned to the Cook Government’s roundtable knocked back claims the industry is cashing in on the war in Iran.

“We’re just trying to give the best prices to our customers. And hoping this war ends soon so we can continue doing business as usual,” Burk Group regional manager Wali Mazhar said.

But Mr Cook said there was anecdotal evidence that some outlets were taking advantage, after The West Australian revealed profit margins have almost doubled in the past week.

The gap between the wholesale price, which fuel companies pay, and the average price they’re charging at the bowser was 28.9 cents per litre last Thursday, compared to 15.1 cents the week before, according to the Australian Institute of Petroleum’s published data.

It was 21.7 cents per litre on Sunday, versus only six cents per litre on Sunday March 1.

The gap has averaged almost 19.5 cents per litre in the past week, compared to an average of 13 cents in all of February.

Commerce Minister Tony Buti said the Government and FuelWatch are “monitoring” prices.

“There is panic buying. So of course, demand and supply. When there’s a great demand, obviously prices do increase,” he said.

Consumer Protection Commissioner Trish Blake said naming and shaming outlets with the highest prices does work.

“Where FuelWatch does operate and report on the pricing, it does offer that downward pressure on prices,” she told ABC Mornings.

“On (cheap Tuesday) Perth in the metropolitan area was the cheapest Australia-wide by a long shot.”

But she conceded drivers in some regional towns don’t have the luxury of shopping around for cheaper fuel.

“And that is the difficult situation. Not all of the regional areas are on our FuelWatch website, but more than 80% of the regions are,” Ms Blake said.

“In some regions, there is not choice, but where there is choice and you as the consumer vote with your feet, you are responsible for keeping that downward pressure on prices.”