3 hours ago
1
West Australian Premier Roger Cook has issued a veiled threat to the state’s biggest fuel suppliers to share confidential commercial information about fuel stocks, and where fuel is being sold, or risk the government deploying emergency powers to get the data by force.
Cook wrote to suppliers including BP, Viva and Ampol on Friday with the request, calling on them to share information, including their total fuel holdings, where they have sent fuel to since the beginning of the Iran war, and the contracts they have signed until June.
Cook said the government needed the information by Tuesday for Fuel Security State Controller Rob Cossart to better coordinate WA’s efforts to get fuel to areas that needed it the most – particularly the state’s agricultural regions, which are gearing up for seeding.
“I strongly request that you comply with all future information requests from our State Controller
I draw your attention to the powers that the WA Minister for Energy holds to compel the provision of information in the event a State of Emergency is triggered under the Fuel, Energy and Power Resources Act 1972,” Cook said in his letter.
“While my preference is to continue to work in partnership with fuel suppliers, should the need arise, my government will not hesitate to do the right thing for WA.”
Cook also asked for the companies to supply him with the plans they had devised to “prioritise and facilitate supplying gasoline and/or diesel fuel to regional, agricultural or maritime consumers in WA who are or are facing shortages”.
Asked why he wasn’t using the powers now, Cook said cooperation was always preferred.
“Quite simply, because we want people to work together. I mean, you always seek people to cooperate and collaborate before you compel them through legislative means,” he said.
“We’ve told them by Tuesday, if they haven’t come up with the information we need, we will act.”
WA has received its contracted shipments of refined fuel since the Iran war started, but demand at the bowser has skyrocketed.
In WA, surplus fuel from big suppliers like BP and Ampol is usually sent to a spot market which services independent retailers, but since demand has increased that spot market has evaporated, leaving independents without fuel.
Energy Minister Amber-Jade Sanderson said there had been “variable” engagement from major suppliers.
“Whilst we’re seeing significant volumes across BP and Ampol we’re not getting the kind of information that we need for the small distributors,” she said.
“I think what this has certainly flushed out across the country is that we have a structural issue with the supply chain.
“If you are a contracted customer, you will continue to get supply, if you are a non-contracted customer who relies on the spot market, then that’s the issue that we’re trying to resolve here.
“So we need greater clarification on volumes, percentages and distribution lines to those smaller suppliers in some of those very regional towns.”
Sanderson said BP had been pumping fuel out at 174 per cent of its usual volume, while Ampol was at 164 per cent of its usual volume.
Australian Institute of Petroleum chief executive Malcolm Roberts said fuel suppliers were already providing a mountain of information to nine governments around the country.
“Suppliers will continue to support Mr Cossart and the state government, working with our customers and officials to keep the fuel flowing,” he said.
“We have one plea; compiling data takes time when the industry is working around the clock.
“As much as possible, fuel suppliers urge governments to coordinate their information requests to avoid unnecessary duplication.”
A BP spokeswoman said the company’s priority was to ensure it met its contractual obligations to existing customers.
“Following the government’s approval of a 20 per cent release of BP’s minimum stockholding obligation, we are working closely with governments and our distributors to deliver additional fuel to regions,” she said.
The spokeswoman’s advice to mum-and-dad consumers was to continue to access fuel as they normally would – “no more, no less”.
Cook rejected calls to set a fuel price, which his government has the power to do.
“We want to maintain that competitive tension in the market so that we can continue to put downward pressure on them, on the prices,” he said.
“We’re confident that under the changes that the Commonwealth Government has made in terms of its strategic fuel supply distribution, that there will be enough fuel to get to the farmers.”
