Six fuel tankers to Australia cancelled or deferred amid Middle East conflict, but supply gaps being filled

Lead

Australia is grappling with fuel supply disruptions linked to the Middle East conflict, with six tankers scheduled to deliver oil next month cancelled or deferred, though officials say the gaps are being filled. Energy Minister Chris Bowen confirmed the cancellations on Sunday, noting that importers and refiners have already replaced some of the lost shipments with alternative sources.

"Some of those have already been replaced by the importers and refiners with other sources," Bowen told ABC Insiders. He described the situation as a "challenged environment internationally" but stressed that Australia's fuel supply remains relatively stable, with two refineries operating at full capacity and tankers continuing to arrive.

Coverage comparison

The ABC's report focuses on the broader impact of the Middle East conflict on Australia's fuel supply, quoting both Bowen and Treasurer Jim Chalmers. The BBC's coverage, meanwhile, centers on the practical consequences for Australians ahead of the Easter holiday, noting that hundreds of petrol stations have run out of diesel. Both outlets report similar statistics regarding fuel reserves, though they differ slightly on the exact figures: the ABC cites 38 days' worth of petrol and 30 days each of diesel and jet fuel, while the BBC reports 39 days of petrol, 29 days of diesel, and 30 days of jet fuel.

Key claims

• Six fuel tankers scheduled for delivery to Australia next month were cancelled or deferred, out of about 81 expected from mid-April to mid-May, according to the energy minister.
• China and Thailand have banned fuel exports, prioritizing their own supplies, while ExxonMobil, BP, and Vitol are shipping record volumes of oil to Australia to fill the gaps, as reported by Reuters.
• Australia imports approximately 90% of its fuel from the Middle East, according to the BBC.
• Fuel reserves stand at roughly 29 to 30 days for diesel, 38 to 39 days for petrol, and 30 days for jet fuel, depending on the source.
• A small number of vessels have passed through the Strait of Hormuz in recent days, though the circumstances of their passage remain unclear, per the BBC.
• Treasurer Jim Chalmers expects fuel prices to remain elevated for up to three years if the conflict becomes protracted, a projection reported only by the ABC.

Perspectives

Bowen emphasized that Australians should proceed with their Easter travel plans, urging them to "take a break - but get no more fuel than you need." He acknowledged that 312 of Australia's roughly 8,000 service stations had run out of diesel, mostly in rural areas where replenishment takes longer. At the same time, he noted that Australia is not an active participant in the conflict, yet consumers are paying higher prices.

The supply disruptions stem from Iran's blockade of the Strait of Hormuz, which has cut off about a fifth of the world's oil supply, including to Asian refineries that ship to Australia, according to the ABC. The BBC describes the strait's "effective closure" as a key factor, with shipping analysts noting that only a few vessels have passed through recently.

Despite the challenges, Bowen expressed confidence that fuel supplies will arrive largely as scheduled until mid-April, and that the country has at least as much fuel in-country as before the outbreak of war. The government is working closely with importers and refiners to replace the cancelled or deferred shipments, while ship trackers show tankers taking longer, more expensive routes from the Gulf of Mexico.

As global oil prices soar, the spike in petrol and diesel prices is putting pressure on Australian consumers and inflation. The government expects prices to remain elevated even in a best-case scenario, with Chalmers' three-year projection underscoring the potential for prolonged economic impact. For now, Australians are being encouraged to limit unnecessary fuel use and consider public transport, particularly as the Easter holiday approaches.