The Federal Government is monitoring potential ripple effects on the global and domestic energy markets following Russia’s invasion of Ukraine.
The Federal Government condemned President Putin’s actions, and has introduced carefully targeted sanctions on Russia.
The Federal Government said that as a member of the International Energy Agency (IEA), Australia is working closely with the IEA and the United States to monitor global energy markets, ensure ongoing supplies and plan for appropriate measures to ensure energy security.
The IEA was established to respond to these sorts of potential shocks to the oil market.
The Federal Government has said it is prepared to join other IEA member countries to contribute to a global collective action, if one is called, through using Australian oil stocks held in the United States’ Strategic Petroleum Reserve (SPR), and it will continue to monitor global gas markets.
Federal Minister for Industry, Energy and Emissions Reduction, Angus Taylor, said Australia has adequate fuel supplies to meet domestic demand in the face of global disruptions as a result of increasing hostilities from Russia.
“The situation between Russia and Ukraine has added to global oil price pressures, which are being experienced right around the world,” Mr Taylor said.
“We understand that as a result of this, many Australian families and businesses are feeling this at the pump when they go to fill up their vehicle.
“While we cannot control these international price spikes, we are closely monitoring the situation with the IEA and the United States and stand ready to take action to help alleviate these pressures.
“With measures we’ve taken in government to strengthen our national sovereignty, our strong international partnerships, and diverse supply chains, I am confident Australia is well supplied to keep us moving.”
The Australian Competition and Consumer Commission will continue to monitor the market to ensure consumers aren’t overpaying.
While we are seeing global oil price spikes, Australia has among the lowest petrol and diesel prices of all OECD countries. This is around 25 per cent lower than OECD average for petrol and diesel.
The Federal Government also recognises that this crisis has impacted international gas markets.
As one of the top three global LNG exporters, Australia can be relied upon to continue to meet contractual export obligations and contribute important liquidity to the global market while ensuring domestic gas supply.