Nationals Leader David Littleproud urged people not to panic. Photo / Getty Images
Australians are being urged not to panic buy food as the deepening crisis in the Middle East hits the bowser.
The US-Israeli war on Iran entered its 10th day on Monday.
The conflict has led to an increase in fuel prices across Australia’s major cities, including after the closure of the Strait of Hormuz, one of the world’s busiest sea transit routes.
Speaking to the media, Transport Minister Catherine King said there was “no doubt” the war would impact the Australian economy.
“We obviously are acutely aware, in a cost of living crisis, that people are struggling with a range of things. Fuel may be one of those,” she said.
Asked if she was concerned about food shortages, King said the federal Government was watching developments in the Middle East closely.
“Really, the message is people shouldn’t be panicked and shouldn’t panic into panic buying fuel, into panic buying food too,” she said.
The Albanese Government has sought to assure consumers that fuel stocks are adequate and above minimum mandatory levels amid criticism from the Coalition.
King said she would look into reports Queensland fuel distributors’ supplies had been cut and that many farmers were not able to get the fuel they needed.
“We are much more resilient than we were in previous years when it comes to fuel security,” she said.
“I’ll look into the issue in terms of what’s happened in Queensland specifically – I’m not aware of particular issues.”
Treasurer Jim Chalmers last week wrote to the ACCC over reports of price gouging on fuel.
Nationals Leader David Littleproud on Monday warned small wholesalers and farmers were “being constrained for the supply that they can get out of the big four oil companies”.
“What that’s doing, is literally meaning that our farmers who are producing our food and fibre have literally got only what’s left in the tanks of their tractors and nothing in storage to be able to run it of any great length of time,” he told Sky News.
“And this is where we’re being told, [Minister for Climate Change and Energy of Australia] Chris Bowen’s telling us there’s plenty of supply, and many of the wholesalers are saying there is supply there, but these big four are constraining the release of that supply because they have retail outlets that they’re prioritising.”
Littleproud urged the ACCC to probe the wholesale market, but urged Australians not to panic.
“The suppliers are there. It just needs some leadership in how we actually manage that and get back to some normality to keep that continuity of supply, through the supply chain, not just the people in the cities to get to and from work, but for your food to be produced,” he said.
It comes as opposition energy and industry spokesmen, Dan Tehan and Andrew Hastie, raise alarm bells over Australia’s fuel reserves.
In a statement, the MPs said Australia was at risk of “going back to 1940 when rationing was introduced to manage shortages caused by World War II”, under Labor.
“Chris Bowen, must reassure Australians that the Government has a strategy in place to ensure there are adequate fuel supplies for our nation,” they said.
“Reports that fuel wholesalers have commenced rationing petrol and diesel supplies across Australia are deeply concerning.”
The statement noted Australia was “a diesel economy”.
“Without fuel, trucks carrying our food, pharmaceuticals and supplies stop, making us vulnerable,” they said.
“The former Coalition government introduced the Petroleum and Other Fuels Reporting Act – a mandatory reporting regime – to monitor Australia’s fuel security.
“Chris Bowen should be using his powers under the Act to identify customers at risk of fuel shortages – especially farmers, manufacturers and the transport industry – to ensure supply gaps are addressed as a priority.”
Sign up to Herald Premium Editor’s Picks, delivered straight to your inbox every Friday. Editor-in-Chief Murray Kirkness picks the week’s best features, interviews and investigations. Sign up for Herald Premium here.