Australian State Triggers Emergency Powers Amid Fuel Crisis
(Bloomberg) — Western Australia invoked emergency powers to force fuel suppliers to provide detailed information on their supply chains, as the nation seeks to manage an ongoing shortage spurred by panic-buying in the wake of the war in Iran.
The state government activated the powers under the Fuel, Energy and Power 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 of agricultural products including grains and livestock, all of which are reliant on diesel to run their operations. Most of Australia’s fuels are imported, and the conflict in the Middle East has squeezed global supplies, sending prices at the pump to records.
“Despite assurances from major suppliers that fuel shipments are expected to 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 on the distribution of fuel,” the Western Australian government said in the statement.
That’s resulted in some mining and agricultural businesses experiencing shortages, and the distribution of fuel could be further affected “if these circumstances continue,” it said.
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