Energy Minister to Travel to Saudi Arabia to Secure Further Fuel Supplies

Energy Minister Chris Bowen will travel to Saudi Arabia next week to meet with his counterpart as the government seeks to secure Australia’s fuel supplies.

The latest Australian Competition and Consumer Commission (ACCC) fuel price report shows prices have risen amid higher global oil prices and the end of the government’s temporary fuel excise cut in August.

Speaking to the ABC’s 7.30 program, Bowen said the government was working to ensure fuel supply in Australia.

Bowen said the government could provide reassurance that it had 3.3 billion litres “locked in” for delivery over the next month, as well as 41 days’ worth of petrol held in Australia.

“I will be travelling to Saudi Arabia next week for direct meetings with my counterpart the energy minister Prince Abdulaziz Al Saud to hear direct from him,” he said.

Bowen said that “getting the best information” through a personal meeting with the prince would be key to managing fuel supply risks in the coming weeks and months.

“The situation in the Middle East had been impacting on fuel prices globally,” he said.

“On the matter of excise, obviously we cut the excise in half for a period of time, we were very clear that was a temporary measure.

“We’re not going to respond to every daily movement on the world oil price.”

According to ACCC data, by Sept. 9, daily average petrol prices across the five largest cities were 209.9 cents per litre, an increase of 5.3 cents from the previous week, and an increase of 14.6 cents compared to Aug. 2.

Across regional locations, daily average retail petrol prices on Sept. 9 were 215.1 cents per litre, an increase of 13.1 cents per litre when compared to Aug. 2.

In the same timeframe, diesel at regional bowsers increase by 18 cents.

In a statement released on Sept. 15, the ACCC warned airfares may become more expensive as fuel prices continue to rise.

Average domestic airfares were 3.5 to 4 percent higher than the same period a year earlier.