Prime Minister Anthony Albanese has pledged emergency action to protect Australian households and businesses from escalating global instability, as fuel shortages bite in regional communities and the Reserve Bank raises interest rates for the second straight month.
Albanese told an Australian Automotive Dealer Association breakfast on Wednesday that the government would move before the May budget, but stopped short of detailing what measures were being considered.
‘We want to make sure that we do everything we can to shield the Australian economy, households and businesses from the worst of global uncertainty,’ Albanese said.
‘This new global challenge demonstrates that we must keep building Australia’s self-reliance and our economic resilience.’
‘We won’t be waiting until the budget. We will have more to say about the actions we are taking in the days ahead.’
Albanese used the speech to call for Australia to reduce its reliance on global supply chains and build domestic manufacturing capacity in critical minerals, clean energy and technology.
‘For Australia to compete, succeed and prosper in this decade – we have to upgrade to a new economic model.
‘We have to build an economy that is more resilient, more self-reliant and geared to our national strengths. This is about making more things here.
Anthony Albanese (pictured) will meet with National Cabinet about the fuel crisis tomorrow
‘Making the most of our traditional resources, critical minerals, clean energy – and our services, our skills and research, our digital and tech sector.
‘Areas where we can, and often do, lead the world. That’s the way forward for Australia, our own way.
‘Not trying to compete by copying from other countries. Backing our people and ourselves to succeed on our terms.’
The Prime Minister is due to meet with National Cabinet on Thursday to discuss the fuel crisis, as shortages in rural and regional areas fuel panic buying.
Energy Minister Chris Bowen said fuel rationing was not being considered at this point, but warned the government would respond if the situation worsened.
‘It is not rocket science to know it is a difficult international environment and that energy security is under pressure around the world,’ Bowen said.
‘Also we are very clear, our fuel supplies remain solid, in terms of what is coming in and what is being produced.
‘Rationing not a conversation that we need to have at this point. Governments will respond to emerging circumstances over coming months and we will work together on it.’
Chris Bowen (pictured) said that fuel rationing was not being considered ‘at this point’
The crisis has pushed petrol prices to well over $2.20 a litre and diesel to more than $2.60 a litre, prompting panic buying, shortages and rationing, particularly in regional areas.
Bowen said the shortages were being driven by panic buying in rural communities.
‘Let’s focus on what we are dealing with now which is real, unacceptable shortages in rural and regional areas and rationing is not the answer to.
‘The answer is getting supply to where it is needed and people buying as much fuel as they need, not more or less.
‘There is no case for panic-buying, there is no case for not buying the fuel you need. Normal behaviour will see us return to normal supply and demand equilibrium.’
The fuel crunch is not the only pressure bearing down on Australian households.
The Reserve Bank of Australia has hiked interest rates for the second straight month, warning of more pain the longer the war in the Middle East drags on.
Domestic price pressures, including a tight labour market and strong economic growth, were already driving inflation further away from the RBA’s 2–3 per cent target band before US-Israeli strikes on Iran.
If the conflict worsened or was not resolved soon, higher fuel costs would push inflation in Australia even higher, Reserve Bank Governor Michelle Bullock said.
But she insisted the reasons for the latest 0.25 per cent rate rise were homegrown.
‘Higher petrol prices will add to inflation, but they’re not the reason for today’s decision,’ she said.
‘Inflation was already too high, reflecting the fact that demand is outstripping supply.
‘Higher fuel costs will not slow demand enough on their own to address this.’
