Major mining companies are urging Australia’s competition regulator to allow coordinated action on fuel security, as Prime Minister Anthony Albanese prepares to address the ongoing energy crisis at a national cabinet meeting on Monday.
The push comes as global energy markets face disruption linked to conflict in the Middle East, which has constrained supplies of oil, gas, and refined fuels. According to a statement, the Australian Competition and Consumer Commission (ACCC) has already issued preliminary approval for major fuel suppliers, including Ampol and Viva Energy, to collaborate in managing national fuel needs.
If the regulator grants final approval next month, the decision would provide temporary immunity from competition laws. According to a statement, the Minerals Council of Australia has argued that similar flexibility should extend to large fuel consumers such as mining companies, citing the broader national interest.
Minerals Council chief Tania Constable said the industry is seeking authorization to ensure companies can coordinate lawfully in response to current conditions. She noted that companies want to share information about developments affecting supply and operations.
The mining sector is one of the country’s largest consumers of fuel, particularly diesel. The three largest iron ore producers—BHP, Rio Tinto, and Fortescue—collectively use close to 2 billion litres annually in Western Australia’s Pilbara region. Diesel powers haul trucks and also supports electricity generation at remote sites, where operations often rely on a mix of diesel and gas.
Fuel demand extends beyond ground operations. Mining companies depend heavily on aviation fuel to transport workers to remote locations, while exported resources are shipped via vessels powered by bunker fuel.
If the ACCC grants approval, miners are expected to collaborate on securing fuel supplies not only for themselves but also for contractors and suppliers across the sector.
The request follows a precedent set during the COVID-19 pandemic. In April 2020, the ACCC allowed mining companies to coordinate on trucking logistics and procurement of safety equipment to ease pressure on supply chains. According to a statement, the temporary authorization enabled companies to share inventories and align operations during a period of disruption.
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While most major miners and their logistics partners are not yet facing severe shortages, industry representatives have flagged emerging concerns. According to a statement, Western Australia Chamber of Minerals and Energy chief Aaron Morey indicated that smaller operators have already begun scaling back non-essential activities to conserve fuel supplies. He warned that further constraints could begin to affect daily operations, with potential consequences for employment and government revenue.
The ACCC has not yet commented on whether it will extend similar permissions to large fuel consumers. However, it has opened a two-week consultation period to gather feedback on its preliminary decision regarding fuel suppliers.
According to a statement, the regulator believes cooperation among oil companies could help distribute fuel more evenly across the country, reducing the risk of localized shortages. The proposal would also allow coordination of maintenance schedules to ensure that Australia’s remaining refineries are not taken offline simultaneously.
Recent examples of cooperation have already emerged. Viva Energy delayed maintenance work at its Geelong refinery, while Santos expedited delivery of crude oil from the Cooper Basin to maintain supply. According to a statement, Viva Energy chief Scott Wyatt said the early delivery was critical to sustaining production and demonstrated the benefits of collaboration.
Santos has also supplied crude oil from Western Australia’s Varanus Island to Ampol’s Lytton refinery near Brisbane, further supporting domestic refining capacity.
Beyond immediate concerns, industry leaders are calling for longer-term policy measures. Constable said governments should focus on increasing domestic gas supply as part of a medium-term strategy. According to a statement, she identified the Dorado gas field in Western Australia as a key development opportunity and called for easing restrictions on onshore gas projects in Victoria and New South Wales.
Global energy prices have underscored the urgency of the situation. According to S&P Global Platts, daily LNG prices in Japan and South Korea have surged to $US20.51 per unit, more than double the $US9.27 recorded earlier in the year.
As policymakers prepare to address the crisis at the national level, the outcome of the ACCC’s deliberations could significantly shape how industries respond to ongoing supply pressures.
Source: AFR
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