Australia’s dependence on transport fuel makes it vulnerable to oil supply disruptions and Australian Governments have acknowledged a clear responsibility to prepare contingency plans against a possible liquid fuel supply emergency.
Australian Government policy is, where possible, to allow industry to manage fuel supply shortfalls without government intervention. If regulatory response were required, Australia’s state and territory Governments have constitutional responsibility for planning and coordinating emergency responses within their territorial boundaries.
In the event of a fuel shortage having national implications or the need for Australia to meet its commitments to the International Energy Agency (IEA), the Australian Governor General may, upon prior consultation with the Commonwealth Energy Minister, declare a national liquid fuel emergency under the Liquid Fuel Emergency Act 1984 .
Supporting the Act are Liquid Fuel Emergency Act Guidelines which set out what a decision maker must do or consider when exercising powers under the Act.
The Department of Resources, Energy and Tourism on behalf of the National Oil Supplies Emergency Committee (NOSEC) is undertaking a national liquid fuel emergency simulation exercise, Catalyst 2008
[PDF, 219KB], which will test Australia's preparedness to respond to a national liquid fuel emergency and some aspects of the Act and Guidelines.
NOSEC has also undertaken a liquid fuel vulnerability assessment to provide a current and forecast assessment of Australia's level of vulnerability to disruptions and/or heightened risks to the supply of liquid transport fuel, both in the short and longer term.