The Australian federal government has outlined plans for retail fuel rationing, according to documents obtained by Guardian Australia under freedom of information laws. The plans are described as a 'worst-case scenario' and have not been implemented, but they come as the International Energy Agency (IEA) warns that oil markets could enter the 'red zone' by August due to dwindling stocks and export shortages from the Middle East.
Rationing Options Considered
The documents reveal that one option to address a local fuel supply shortage is imposing a 'maximum transaction value per vehicle per day'—a rationing rule limiting how much fuel a single vehicle can buy at a service station over a 24-hour period. This measure would be enacted under the Liquid Fuels Emergency Act, which grants the federal energy minister, Chris Bowen, powers to declare a liquid fuel emergency (LFE) and direct fuel supply or implement rationing in extreme cases.
Despite the planning, both Minister Bowen and Prime Minister Anthony Albanese have publicly ruled out the need for fuel rationing. Bowen stated on 26 March that the emergency plan, which has existed since 2006, 'was just a guide' and the government 'wouldn't do it that way.'
International Context and Voluntary Measures
Other countries have enacted various responses to the fuel crisis, including limiting purchases and asking citizens to reduce travel, according to the IEA. The Australian government has requested that citizens consider voluntary measures such as using public transport to ease demand.
Documents from a 13 March meeting of the National Oil Supply Emergency Committee (Nosec) indicate that representatives from Victoria raised interest in 'thinking in future about what rationing will look like.' One participant wanted to 'consider what demand rationing might look like and messaging around this.' The meeting resolved that the Department of Climate Change, Energy, the Environment and Water (DCCEEW) would 'consider work on how rationing under an LFE declaration would work under a future worst-case scenario, and what messaging might look like.'
Government Actions to Bolster Supply
Since the crisis began, the government has secured 600 million litres of diesel and 100 million litres of jet fuel through 14 additional cargoes from Singapore, China, Brunei, and other nations. The budget also included a $10 billion fuel security package to strengthen reserves.
A document titled 'Background to the National Oil Emergency Demand Restraint Strategy' discusses possible settings around 'regulated retail rationing.' It suggests that in a serious fuel shortage, controls could be placed on bulk or retail sales of petroleum products and other customer demand-side management responses to ensure supply for essential users. The government's preference is for industry to respond first, before ministerial powers are enacted.
'Depending on the severity and expected/actual duration of an emergency, people may be restricted in their fuel consumption for certain periods of time,' the document states. 'It is anticipated that mandatory controls would only be introduced if market-based measures did not achieve desired outcomes.'
State and territory governments, the petroleum industry, and other key stakeholders would be consulted before any mandatory controls are introduced.
