The Maritime Union of Australia warns that Australia’s fuel security crisis has been laid bare by escalating international conflict and the effective closure of the Strait of Hormuz, one of the world’s most critical oil shipping routes.
This is not a distant geopolitical drama but a direct threat to Australian workers, families and industries. When a fifth of the world’s oil moves through a single maritime corridor and that corridor is shut by war, the consequences are immediate.
Australia is an energy exporting nation. It is indefensible that we cannot guarantee our own fuel supply. Fuel sovereignty is a national responsibility. The time for half measures has passed; decisive action is required now.
For decades, successive governments have allowed our domestic fuel capacity to be dismantled. Under the former Liberal–National Coalition government in particular, Australia’s strategic fuel reserves were effectively offshored, with public money spent storing fuel overseas rather than building sovereign stockpiles at home. At the same time, refinery after refinery closed. Despite once being a nation capable of refining and transporting own fuel, Australia has been reduced to being a price-taker in a volatile global market.
Today, Australia imports the overwhelming majority of its refined petrol and diesel. We rely on foreign refineries, foreign-owned tankers and shipping lanes that run through contested waters. Our fuel security buffer remains dangerously thin and for years fell short of the 90 day minimum stockholding obligation set by the International Energy Agency.
Fuel sovereignty is not an abstract policy debate. Diesel powers freight, agriculture, mining and construction. Petrol keeps essential workers moving. Aviation fuel connects our cities and regions. Without secure and accessible supplies, supermarket shelves will wind up bare, transport will grind to a halt, regional communities will be cut off and emergency services will be compromised. Running out of imported fuel during a global supply shock would not just drive up prices, it would stall the economy and threaten our entire economy.
“The closure of the Strait of Hormuz during the recent attacks on Iran is a stark warning of the volatility of Australia’s access to global fuel supply chains,” said the MUA’s National Secretary Jake Field.
“We mustn’t gamble our economic stability on uninterrupted access to foreign fuel markets. We cannot assume that geopolitical tensions will always resolve before our reserves run dry,” Mr Field added.
The Maritime Union of Australia calls on the Federal Government to act decisively and urgently.
The Union says that Australia must rebuild its sovereign fuel storage capacity onshore and maintain reserves that comfortably exceed international minimums and that we must protect and expand domestic refining capability to reduce reliance on imported finished fuels.
“We must realise the commitment of an Australian flagged and crewed strategic shipping capability that can guarantee delivery of essential energy supplies in times of crisis. Fuel security must be recognised as a pillar of national security, economic policy and social stability,” said Mr Field.
ENDS
Contact details:
Tom Harris-Brassil - 0401 834 924