Industry backs ‘direct action’ on fuel security
The Federal Government has introduced new fuel security measures aimed at maintaining supply and reducing disruption across key industries, including mining and resources.
Under the package, the government will halve the fuel excise on petrol and diesel for three months from April 1 to June 30. It will also reduce the Heavy Vehicle Road User Charge to zero over the same period and defer the next scheduled increase in the charge by six months. It has also moved to strengthen its ability to support fuel supply through amendments to the Export Finance and Insurance Corporation Act.
The changes formalise the government’s capacity to underwrite additional fuel cargoes and build strategic reserves where required.
Industry groups have welcomed the measures, pointing to their potential to support supply continuity for businesses and regional operations.
Association of Mining and Exploration Companies (AMEC) chief executive officer Warren Pearce said the announcement provides reassurance during a period of uncertainty.
“This is direct action that will deliver direct results,” Pearce said.
AMEC said the measures are expected to support exploration and mining activity, particularly in regional and remote areas where diesel supply is critical.
Under the amended legislation, Export Finance Australia will be able to enter into insurance or indemnity contracts, provide guarantees, issue loans and support arrangements to help secure fuel imports from international markets.
The Federal Government said it is engaging with domestic and international suppliers to source additional fuel cargoes, with a focus on addressing regional shortages and critical supply gaps. In a joint ministerial statement, it said the new powers will be used selectively to secure supply that may be cost-prohibitive for private operators to obtain on commercial terms.
“Support will not replace or subsidise fuel that importers are already contracted to supply,” the statement said.
The Minerals Council of Australia (MCA) believes the expanded role for Export Finance Australia will help strengthen fuel supply security and support longer-term trade relationships with key international partners.
“Importantly, it should enable the critical supply chains between Australia and its partners to grow and mature into long term commercial partnership that together deliver stronger commercial supply chains to help make the Australian minerals industry the global supplier of choice,” the MCA said.