Australia monitoring global energy markets over Russia-Ukraine hostilities

The Morrison Government is closely monitoring international energy markets and any potential impacts at home in the face of escalating hostilities from Russia against Ukraine. 

The Government condemns President Putin's actions which have impacted global energy markets. We have, along with allied governments and other partners, introduced carefully targeted sanctions on Russia.

Australia is in a fortunate position to have strong energy security, with good supplies of gas and oil for domestic use.

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.

Australia is prepared to join other IEA member countries to contribute to a global collective action, if one is called, through using our oil stocks held in the United States’ Strategic Petroleum Reserve (SPR) and will continue to monitor global gas markets.

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. 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,” Minister Taylor said. 

“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.”

Over the past year, the Morrison Government has taken significant steps to enhance Australia’s domestic fuel security. Through our comprehensive fuel security package, the Government has:

• secured the operations of the Ampol refinery in Brisbane and the Viva Energy refinery in Geelong until at least mid-2027;
• committed $260 million to build more domestic storage to support a 40 per cent increase in local diesel stocks through the minimum stockholding obligation (MSO); and
• taken advantage of historically low oil prices to purchase just under 1.7 million barrels of oil stored in the United States Strategic Petroleum Reserve (SPR) for use during an international crisis.

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 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 our contractual export obligations and contribute important liquidity to the global market while ensuring our domestic gas supply.

Australia is in the fortunate position to be experiencing gas prices around 70 per cent lower than overseas. The Government will continue to ensure Australian gas is continuing to work for Australians as a top priority during these difficult times globally.

Media contact:

Minister Taylor's office 02 6277 7120