National fuel supplies at a dangerous low

As Australia’s domestic fuel supplies sat at dangerously low levels, the State’s peak motoring body urged leaders to help facilitate better uptake of low emission vehicles to avoid future fuel outages.

The concern came as the Australian Federal Government reportedly entered into negotiations with the Trump administration to access oil from the United States’ fuel reserves.

The latest Australian Petroleum Statistics report revealed Australia’s ‘net import coverage’ was well below the 90 day supply requirement of the International Energy Agency (IEA) agreement.

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RACQ Head of Public Policy Rebecca Michael said while it was important these negotiations with the US occurred, it was equally as vital the Federal Government considered ways to reduce fuel demand.

“While these talks won’t increase current fuel stocks in Australia, they’re the right steps to ensuring we meet our international obligations under the IEA,” Dr Michael said.

“It also demonstrates the need for greater fuel storage on home soil, but unfortunately that’s not likely to come without bringing a ripple of effects across the country.

“If the Federal Government was to mandate industry must hold more reserves, we could see higher prices at the pump as we’d expect retailers to pass on these costs to motorists.

“That’s why we need to look at new ways to reduce liquid fuel demand and make it more affordable for motorists to make the switch to electric and low emission vehicles.

“Fuel is a key driver of our economy, so we’re calling on our leaders to get this issue sorted.”