Australian State Triggers Emergency Powers Amid Fuel Crisis
(Bloomberg) — Western Australia invoked emergency powers to force fuel suppliers to provide detailed information about their supply chains, as the country seeks to manage a lingering shortage caused by panic buying in the wake of the Iran war.
The state government activated powers under the Fuel, Energy and Electric Resources Act after several companies failed to provide specific data and information on fuel shipments, it said in a statement on Wednesday.
Western Australia is a major global exporter of iron ore, gold and other minerals, as well as agricultural products including grains and livestock, all of which rely on diesel to power their operations. Most Australian fuels are imported and conflict in the Middle East has reduced global supplies, sending prices at the pump to record highs.
“Despite assurances from major suppliers that fuel shipments should continue to arrive in April at normal levels, the ongoing conflict, the closure of the Strait of Hormuz and other circumstances in the Gulf region have impacted fuel distribution,” the Western Australian government said in the statement.
This has led to shortages at some mining and agricultural businesses, and fuel distribution could be further affected “if these circumstances continue”, he said.
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