The Western Australian government has rejected calls for a temporary cap on petrol prices despite soaring costs, opting instead for measures to prioritize fuel imports and monitor supply chains amid ongoing volatility linked to the conflict in the Middle East. The decision came after an emergency roundtable meeting convened by Premier Roger Cook on Wednesday to address rapidly increasing fuel prices across the state.
Unleaded petrol in Perth has jumped by 63.4 cents per litre in the past week, reaching an average of $2.27 per litre on Wednesday, with some stations charging as high as $2.45. The price surge follows US and Israeli military actions in Iran on February 28, triggering instability in global oil markets.
While acknowledging the financial strain on consumers, Premier Cook stated that implementing a price cap – a power unique to Western Australia – was not the solution. “I think it was unanimous in the room that we don’t need price caps but we do need calm,” he said following the meeting. He emphasized that assuring fuel supply was the priority.
The government will prioritize fuel and fertilizer imports through WA’s ports and ensure timely restocking of fuel in regional areas. A new industry operational group will meet weekly to manage domestic supply chain issues. These measures aim to address concerns about potential shortages, particularly in regional Western Australia, where some service stations have begun rationing fuel and limiting sales to emergency services and essential industries.
Farmers are already reporting disruptions. Gordon Coleman, a Kojonup farmer, said he was informed he would only receive 10% of his usual 20,000-litre fuel order ahead of the upcoming seeding season. Amy Dyer, a farmer near Manjimup, reported uncertainty around diesel supply was impacting operational decisions, including whether to proceed with seeding.
The situation is also impacting other industries. Tamara Chinnery, a citrus and vegetable grower in Carnarvon, warned that continued price increases could force her to cease production, adding to existing challenges from recent heatwaves and cyclones.
Energy Minister Amber-Jade Sanderson urged motorists to “shop around” for cheaper fuel, but acknowledged the difficulties faced by those in regional areas. Attorney General Tony Buti stated there was “no evidence” of price gouging, despite the rapid increases.
The traditional weekly fuel price cycle in Perth, which typically sees Tuesday as the cheapest day to purchase petrol, has been disrupted by the current crisis.
Opposition Leader Basil Zempilas has called on Premier Cook to provide greater clarity on the extent of the fuel supply situation and outline any further actions the government is considering. “Tell us the situation – what are our fuel supplies like, are we in danger of running out?” Zempilas asked.
The WA government’s decision comes as reports emerge of dozens of fishing trawlers stranded due to fuel shortages across Australia, highlighting the broader national impact of the Middle East conflict on fuel supplies.