The Maritime Union of Australia (MUA) has warned of dire fuel security risks that could leave Australia stranded as global conflicts disrupt international supply chains.
For over a decade, the union has warned that Australia’s petroleum supply chain is dangerously fragile.
Today, with the conflict in Iran escalating and shipping routes in turmoil, those warnings have become a stark reality.
Australia now imports more than 90 per cent of its refined fuel, transported almost exclusively on foreign-flagged ships with international crews.
The MUA highlights a back-to-front madness in domestic production. Over the last 15 years, the closure of local refineries has left just two facilities operating, supplying less than 20 per cent of national demand.
Compounding the issue, these refineries are configured to process crude oil from the Middle East, while Australia’s own high-quality crude is shipped offshore.
The union is calling for urgent action to restore Australia’s fuel security and supply chain sovereignty.
“Australia cannot continue to rely on the goodwill of foreign governments and multinational shipping cartels to keep the nation running,” said MUA National Secretary Jake Field.
The union is calling for a fundamental shift from a just in time supply model to a just in case strategy.
While the government recently established a Fuel Security Taskforce, Field argues Australia must look beyond the immediate crisis in the Middle East toward long-term resilience.
MUA has made four key recommendations for the government to implement over the medium-to-long-term.
“Australia needs targeted investment in domestic refining capacity. Existing refineries should be upgraded to process Australian crude for Australian use, reducing our reliance on imported oil to strengthening local supply,” Field said.
The government should restore an Australian-flagged and crewed tanker fleet to ensure that fuel can be moved reliably across the country.
The government must also act on the recommendations of the Strategic Fleet Taskforce to create a viable, competitive Australian shipping industry that can operate in the national interest during times of crisis.
Finally, MUA reccommended a Parliamentary Inquiry into fuel security to develop a long term plan for national energy sovereignty and supply chain resilience.
