Australia’s major business chambers have today urged federal and state governments to ramp up efforts to address the fuel crisis and mitigate the possible development of even worse outcomes.

CEOs of the Australian Chamber of Commerce and Industry, Business NSW, the Victorian Chamber of Commerce and Industry, Business Chamber Queensland, the Chamber of Commerce and Industry Western Australia, the South Australian Business Chamber, the Tasmanian Chamber of Commerce and Industry, the Northern Territory Chamber of Commerce, and Canberra Business Chamber expressed the importance of ensuring the continuity of businesses and business activity through the crisis.

“ACCI appreciates the steps the government has already taken, but efforts must be stepped up to ensure Australian businesses come through this crisis in the best shape possible,” ACCI Chief Executive Officer Andrew McKellar said.

“Australian businesses are working strenuously to adapt to the shortages and higher prices. They are altering business operations, working with employees, and preparing for further shortages.

“It’s critical governments work closely with industry groups and chambers of commerce for real-time intelligence, understanding of the issues, and discussion of policy options.

“Beyond the immediate fuel crisis and looking longer term, the business community will expect policymakers to step up their focus on energy supply and affordability, with a greater focus on supply chain vulnerabilities and the development of alternative sources of fuel.”

The business chambers’ Four-Point Plan to deal with the fuel crisis:

1. Secure Supply. The top priority must be securing extra supply so that we have fuel to distribute. This means working with allies to secure an outcome in the Gulf that enables oil shipping to resume. It also means stepping up efforts to secure fuel from alternative markets.
   
   
2. Ensure Distribution. The government must work with oil companies, distributors, and service station owners to ensure that gaps in distribution are being plugged as efficiently and effectively as possible.
   
   
3. Manage Demand. As supply expectations reduce, the government may need to look at a range of measures to reduce demand. If required, these should naturally begin with voluntary measures and could progress, if necessary, to more serious interventions commensurate with the requirement to conserve fuel. We note that many businesses are already taking voluntary steps to reduce fuel use and are working with their employees to manage travel as appropriate.
   
   
4. Ensure Business Continuity. It is critical to ensure the continuity of businesses through the crisis. Where government support measures (from both Commonwealth and states/territories) are required, they should be timely, temporary, and targeted. Business support to be considered with a deterioration in conditions could include cash flow support, measures to retain employees and ensure finance availability, and emergency assistance where appropriate.

Daniel Hunter, Business NSW Chief Executive Officer:

“NSW is already resorting to emergency powers as Sydney and regional stations run out of fuel.”

“Bulk supply for critical businesses in construction, mining and agriculture must be a national priority and we welcome the Emergency Operations Centre in Parramatta focusing on this.”

“This is a fuel supply crisis and a huge problem for diesel distribution. National coordination will help ease this pressure.”

Sally Curtain, Victorian Chamber of Commerce and Industry Chief Executive Officer:

“Fuel and supply chain disruptions are having significant impacts across key industries, highlighting the urgent need for a nationally coordinated approach that works closely with industry.”

“Businesses are adapting quickly, but they cannot carry this disruption alone — governments must act now to secure supply and keep goods moving to protect jobs and keep businesses operating.”

Heidi Cooper, Business Chamber Queensland Chief Executive Officer:

“Fuel supply disruptions and escalating costs are putting an already stressed and stretched business community under further strain in Queensland and particularly in our regional communities.”

“Governments must act decisively and work hand in hand with industry to secure supply and manage demand or risk further threats to confidence, operations, and jobs in a time of growing uncertainty.” 

Will Golsby, Chamber of Commerce and Industry Western Australia Chief Executive Officer:

“Western Australia’s mining, energy and agricultural sectors are critical to the national economy, and secure fuel supply is central not only to their operations, but to the many businesses and communities that support those sectors across WA.”

“WA makes up a third of Australia’s land mass and much of our state is at the end of global supply chains, so security and certainty around fuel supply is needed to keep our industries, businesses and community services operating in every sector of the economy viable.”

Andrew Kay, South Australian Business Chamber Chief Executive Officer:

“We are receiving direct and immediate feedback from businesses impacted by both price and supply. This is even more acute in regions smashed by drought, floods and algal bloom in recent years.”

“The benefits to our governments in working with the state Chamber network on practical measures and clear messaging was proven during the pandemic and this should be no different.”

Glen Hingley, Northern Territory Chamber of Commerce and Industry Chief Executive Officer:

“The Northern Territory is almost entirely dependent on diesel and LNG. With very limited renewable energy and no coal-fired generation, the economy remains highly exposed to fuel shocks and external disruptions.”

“Following the current conflict, diesel and petrol prices have surged to the highest in the nation. This prompted the Northern Territory Chamber of Commerce and Industry to convene an urgent meeting of peak industry bodies to address reports from members of fuel cost increases of up to 100%, severe supply-chain disruptions, and reported reduced airline capacity.”

“These factors, alongside the compounding impacts of recent devastating flooding, are creating serious viability risks for businesses locked into fixed-price contracts and intensifying stress across all sectors of the Northern Territory economy.”

Greg Harford, Canberra Business Chamber Chief Executive Officer:

“ACT and regional businesses report that they are already actively taking measures to travel less as a result of the crisis, but there are significant costs hitting a fragile economy.”

“We are urging governments to provide certainty and support through the crisis, including by pausing the introduction of new costs and regulation on business.”

Colleen Reardon, Tasmanian Chamber of Commerce and Industry Acting Chief Executive Officer:

“At a time like this, it is crucial that governments act in a measured and considered way, and not make policy on the run.”

“At the top of this list, governments need to consult closely with, and listen to, affected sectors.”