Fuel Demand Surges by 30% Over Easter as Australia Bolsters Supply

During the recent Easter holiday, Australia experienced a notable 30 percent increase in fuel demand, prompting swift action to secure additional petrol and diesel supplies. This boost in demand has been met with a proactive response from the government, ensuring that the nation’s fuel supply remains stable in the coming months.

On Monday, Energy Minister Chris Bowen assured the public that Australia has successfully extended its fuel reserves beyond mid-April, with new orders placed to maintain supply continuity. “We now have security of supply through April and into May,” Bowen confidently stated to reporters in Sydney.

Despite these measures, Bowen acknowledged the challenges posed by the current global landscape, particularly with the ongoing closure of the Strait of Hormuz. “As we’ve indicated on multiple occasions, we recognize it’s a difficult international environment, and there are risks to supply chains,” he added, emphasizing the government’s vigilance in navigating these uncertainties.

The remarkable surge in fuel demand over Easter underscores the necessity of these strategic actions, ensuring that Australians have access to the essential resources they need during such peak periods.

“If you’re storing fuel at home, that’s very dangerous,” he said.

“It’s not recommended and it doesn’t help the situation, it makes the situation worse for all of us.”

In NSW, 142 out of 2400 service stations were without diesel, slightly down on Sunday’s figures. Thirty-nine servos have no fuel.

Bowen said 3.7 billion litres of different types of fuel were on their way to Australia.

Higher prices expected for months

Consumers are being warned to expect higher prices at the supermarket checkout and the bowser for months to come.

Relief has started to flow after the federal government temporarily halved taxes on petrol and diesel, while states agreed to pass on an expected GST windfall because of higher takings on sales.

But the combined savings, worth more than 30c per litre, have not offset the full impact of high global oil prices due to the trickle of ships carrying supplies coming through the Strait of Hormuz, which has been closed by Iran.

It would take a while for supply chains to be restored to their pre-war states even after the US-Israeli conflict with Iran ended, University of Sydney associate economics professor David Ubilava said.

“The market disruption and the war has dragged on long enough that its effects will be felt for months to come,” he said.

“Not only will the price of fuel go up, but so will transportation costs and, as a result of fuel surcharges, deliveries, groceries and restaurants will become more expensive as those costs are passed onto the consumer.”

United States President Donald Trump has flagged that strikes on Iran could end within weeks, recently saying core objectives were nearing completion.

Assistant Foreign Minister Matt Thistlethwaite on Sunday said the flow-on effects on fuel prices and inflation would have a long tail.

“If [the war] ended tomorrow, there’d still be effects in the coming months, but we’re planning for that,” he said.

Ubilava said while the volatile situation made forecasting difficult, it was hard to see the crude oil price — currently close to $159 per barrel — returning to pre-war levels of about $101.

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