Federal government says fuel supply 'solid and secure' as prices climb again

The federal government is moving to reassure Australian motorists regarding the security of the nation's fuel supply. Energy Minister Chris Bowen stated that current reserves are higher than they were at the onset of the conflict in the Middle East. Recent data shows 42 days of petrol, 38 days of diesel, and 32 days of jet fuel currently in stock. This inventory is supplemented by 51 ships carrying an additional 3.1 billion litres, providing a buffer against international market volatility.

Global oil prices recently surpassed $100 per barrel as tensions between the United States and Iran escalated. This shift in the energy market has led to increased costs at the pump, with the national average for unleaded 91 sitting at $1.88 per litre and diesel at $2.30. Analysts suggest these price pressures may persist for several months as conflict in the region continues to affect shipping routes near the Red Sea.

Motorists face additional uncertainty as the government fuel excise discount is scheduled to expire on August 2. This discount was previously reduced from 32 cents per litre to 16 cents earlier this month. While no official decision has been announced regarding a potential extension of this policy, industry representatives suggest the government remains open to further adjustments. The Minister reiterated that the government continues to work with trading partners and local refiners to maintain stability for domestic consumers during this period of price climbs.