Peter Stefanovic, Host: Joining us now is the Assistant Foreign Minister Matt Thistlethwaite. Good to see you this morning, Matt. So, how much trouble are we in once this current flow of fuel laden ships to Australia slows down?
Matt Thistlethwaite, Assistant Minister for Foreign Affairs and Trade: Good morning, Pete. Well, fuel is still getting through to Australia. I've met with some executives of Vopac last week, one of the big fuel distributors in Australia, their ships are still getting through. There have been some cancellations, which no doubt is concerning, but I think the important fact is that the majority of fuel is still getting through. We've appointed a National Fuel Coordinator who's going to work with the States and Territories to ensure that the fuel gets to the areas where it's needed as quickly as possible. Well, there's no doubt, Pete, that this conflict is having an effect and the longer that it goes on, the more destabilising it could be, unfortunately.
Stefanovic: Well, on that point, and Trudy just pointed this out to six ships have been cancelled so far. Are you expecting that number to rise?
Assistant Minister: Look, it's hard to say. The majority of our fuel comes from South Korea and Singapore, so it doesn't directly come through the Strait of Hormuz. Some of it certainly does, but only about 20% of it. But the issue is that that fuel that comes from South Korea and Singapore, a lot of it does come through the Strait of Hormuz. So, indirectly there, there are effects. As you pointed out, the Prime Minister's negotiating with our Asian neighbours and counterparts to try and maximise the amount of fuel that is available in Australia. But at the moment, people should take what they need and no more. And we'll continue to work through this situation. We're doing everything we possibly can to ensure that we can maintain fuel security for Australia.
Stefanovic: But if there is a flow in effect, let's say South Korea, where we get so much of our fuel from, you know, it's so energy reliant on that fuel coming through the Strait of Hormuz. What if it decides to keep more of it for itself? Then that would have a flow on effect to us, right?
Assistant Minister: Well, the beauty of Australia, Pete, is that we are one of the largest distributors of LNG anywhere in the world. And South Korea gets almost all of its LNG, it's liquefied natural gas through Australia. So, they've got a vested interest in ensuring that. It's a two-way street.
Stefanovic: So, if they were, I don't know, but we're getting, maybe we're getting into speculative territory here, but if they were to withhold from us, we withhold LNG from them?
Assistant Minister: Well, I don't think it'll get to that. I think that both nations –
Stefanovic: But it could?
Assistant Minister: No, no I don't think it will. Both nations need supplies of LNG and fuel. Australia is a very reliable distributor of LNG. It's one of our greatest export assets. So, we've got that advantage in that we can work with our neighbours in Asia Pacific to ensure that they have access to their energy needs and we get access to ours.
Stefanovic: So, you see, you make a good point there. So, is that the quid pro quo for us at the moment that LNG exports would, would become a net benefit for us because Qatar is now, I mean it's been not so much depleted but it has been hit and set back for a while. Would we be looking at a quid pro quo with, with some of our northern neighbours, LNG for oil?
Assistant Minister: Well, we don't need to because we're a reliable distributor. There's no effects on our supply. Those ships are still getting through and most of that is under contract. So, a lot of the assets are joint ventures between Australian companies and South Korean or Singaporean and the like and they're all under contract. So, those contracts will continue to be met by Australia. We're a very reliable distributor of LNG assets to the region and that will continue.
Stefanovic: The Treasurer said no to a fuel excise change when I asked him about a couple of weeks ago. Matt, do you think that should be looked at again though as the of oil continues to rise?
Assistant Minister: We don't believe so at this point in time. The fuel excise is a flat rate and obviously it goes to funding rural and regional roads in particular. But the point is that fuel is still getting through so the majority of our fuel imports and ships are arriving and they are supplying --
Stefanovic: I'm probably more getting towards a temporary short term solution for high costs at the bowser though. Is a cut to the fuel excise something that you would now consider?
Assistant Minister: We're not contemplating that at the moment because we've got other measures that we put in place. The ACCC is really, really working hard and cracking down on people that do the wrong thing. We've got the National Fuel Coordinator who's working with the States and Territories. She's reporting back to the Treasurer and to the Energy Minister on a daily basis about where the supply issues are. So, we're coping and we're getting through.
Stefanovic: Well, how alarmed are you at these reports that people are knocking off fuel now? And for the most part it's truck drivers with 300 litre tanks. Not all of them. Some, according to the Daily Telegraph.
Assistant Minister: Yeah, that's pretty concerning. And there's no need for that because, as I said, we have adequate fuel supplies and the ships are still getting through, so people should take what they need. I think we need to come together at times like this and realise that we're all in this together. And I certainly understand that people have to run their businesses, particularly farmers and people in rural and regional areas, and certainly truckies. But the fuel supplies are getting through. There's no need to panic buy, there's no need to stockpile. If we all take what we need, we'll get through this.
Stefanovic: Right, just a final one here. I mean, you've got fuel now at $3 a litre in some parts. Diesel more common than that. Just areas around Sydney, it's already at $3 a litre. Is it possible we end up paying $4 a litre?
Assistant Minister: I can't speculate on what's going to happen with price, but obviously the longer the conflict goes on, the more potential has to restrict supplies and push up prices. And that's why the Prime Minister and our government has been calling on the Trump administration and the Netanyahu administration to try and negotiate a ceasefire --
Stefanovic: And you can't deny it could get to four bucks a litre --
Assistant Minister: I can't speculate, Pete. I don't know what's going to happen with prices. They're set by the market. And obviously the longer the conflict goes on, the more it could have an effect on price. And that's why we're calling on the Trump administration and Netanyahu administration to try and negotiate a ceasefire and bring this conflict to the end.
Stefanovic: I mean, we've added our names to the list of countries, you know, demanding the safety of vessels through the Strait of Hormuz. Is Iran going to listen, though?
Assistant Minister: Well, they should, because there's no need for this conflict to continue. The United States original aim was to disable the nuclear facilities in Iran. It appears that that goal has been achieved. So, there's a question mark about what the end game is here. And that's why we think it's time for a negotiation around a ceasefire and a sensible outcome, so the world can start to return to normality and the Strait can open again and the world can receive the adequate fuel supplies that it needs.
Stefanovic: Matt Thistlethwaite, good to have you with us this morning. Thank you, as always.
Assistant Minister: Thanks Pete.