❓ This parliamentary question addresses regional fuel supply issues in Western Australia following a fuel security round table. The Premier acknowledges the Middle East crisis's impact on national fuel security and explains that contracted customers are taking full allocations, limiting the spot market for independent distributors. The government is working to alleviate supply chain pressures.
AnsweredQoN 129Legislative Assembly
QuestionView source ↗
Fuel supply—Regions
129. Mr Shane Love to
the Premier:
I refer to the fuel security
round table held yesterday. The government has said that fuel providers will
respond to regional needs through timely restocking.
(1) When can regional
Western Australians expect to see fuel flowing again at local bowsers and, if
not today, when?
(2) Has the Premier established the quantum of the
backlog across the state?
(3) What assurance has the Premier received that
independent fuel distributers will have access to sufficient fuel supply to
meet the needs of their regional customers?
129. Mr Shane Love to
the Premier:
I refer to the fuel security
round table held yesterday. The government has said that fuel providers will
respond to regional needs through timely restocking.
(1) When can regional
Western Australians expect to see fuel flowing again at local bowsers and, if
not today, when?
(2) Has the Premier established the quantum of the
backlog across the state?
(3) What assurance has the Premier received that
independent fuel distributers will have access to sufficient fuel supply to
meet the needs of their regional customers?
AnswerView source ↗
(1)–(3) I thank the member for the
question; it is an important one. National fuel security is a key issue that is
being felt right across the country as a result of the Middle East crisis. We
are very pleased that we are in a position at the moment where there are no
challenges to fuel supply chains. In fact, yesterday BP assured us that ships
are on their way. Three are on their way to Port Hedland, three are on their
way to Kwinana and one tied up last night. BP explained to us that it has a
range of contracted customers that can, under those contracts, take a volume of
fuel up to a maximum amount. When they have done so, BP then releases the
surplus amount from those transactions onto the spot market. Some members of
the fuel industry, distributors or retailers, utilise that spot market to
purchase fuel. In normal circumstances, they would be able to rely on the spot
market. It was pointed out to us yesterday that the customers contracted to BP
are taking their full allocations under those contracts, which eliminates the
spot market, making it difficult for BP to provide for other customers. They
may be smaller distributors; they may be direct retailers. But we discussed a
lot yesterday how we can ensure that those customers ultimately get access to some
fuel supplies.
Mr Speaker, it was clear that
people around the state are having different experiences in relation to the
current circumstances. To some extent, it depends a little bit on what part of
the supply chain they are fed by. The fuel security round table held yesterday
was a good opportunity to identify how we can alleviate the pressures on those
supply chains to ensure that people in regional WA continue to receive fuel in
a timely fashion.
question; it is an important one. National fuel security is a key issue that is
being felt right across the country as a result of the Middle East crisis. We
are very pleased that we are in a position at the moment where there are no
challenges to fuel supply chains. In fact, yesterday BP assured us that ships
are on their way. Three are on their way to Port Hedland, three are on their
way to Kwinana and one tied up last night. BP explained to us that it has a
range of contracted customers that can, under those contracts, take a volume of
fuel up to a maximum amount. When they have done so, BP then releases the
surplus amount from those transactions onto the spot market. Some members of
the fuel industry, distributors or retailers, utilise that spot market to
purchase fuel. In normal circumstances, they would be able to rely on the spot
market. It was pointed out to us yesterday that the customers contracted to BP
are taking their full allocations under those contracts, which eliminates the
spot market, making it difficult for BP to provide for other customers. They
may be smaller distributors; they may be direct retailers. But we discussed a
lot yesterday how we can ensure that those customers ultimately get access to some
fuel supplies.
Mr Speaker, it was clear that
people around the state are having different experiences in relation to the
current circumstances. To some extent, it depends a little bit on what part of
the supply chain they are fed by. The fuel security round table held yesterday
was a good opportunity to identify how we can alleviate the pressures on those
supply chains to ensure that people in regional WA continue to receive fuel in
a timely fashion.
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