Doorstop, Sydney, NSW

CHRIS BOWEN: Thanks for coming everyone. A few very brief remarks. I'm on a very tight schedule, but I know a lot of Australians are very concerned and interested on the situation, not only in the Middle East, but its impacts on Australia.

I can report that Australia continues to hold good stock levels, petrol, jet fuel and diesel. Three billion litres of diesel, one and a half billion litres of petrol. I do know that there is some supply chain issues which is really being caused by a spike in demand of people seeking to buy extra diesel.

I, this morning, have been speaking to the diesel and petroleum industry and we'll have further meetings tomorrow to ensure that every action possible is being taken to help Australians and Australian farmers and Australian industry through this uncertain time. But the fundamentals are good in that Australia has a good supply, and importantly, speaking to the industry this morning, have confirmed that every single expected delivery of petrol, diesel and jet fuel has arrived on time, on schedule, as expected.

So at this point, while there are challenges ahead, no doubt about it, Australians can be confident that the rules put in place in 2022 to ensure that Australia has a stock of petrol and diesel on hand here in Australia, not in Texas or Louisiana or anywhere else, on hand here in Australia, puts us in a good position. We enter this international crisis well prepared, as well prepared, better prepared than we have entered similar crises, certainly in the lead-up to the 2022 energy crisis caused by the invasion of Ukraine, much better prepared now than we were as a country then.

Happy to take a few questions. Hugh? JOURNALIST: Farmers say that it's not reaching the regions, already seeing it running out.

What do you say to them? Are they wrong? CHRIS BOWEN: No one's wrong.

I have been speaking to the industry this morning. They've confirmed to me that every single contract is being honoured. Every contract for demand that has previously been ordered, for diesel, petrol or anything else is being honoured.

There has been a big spike in extra orders over and above contracts, spot orders if you like, the spot market. And inevitably, when you're seeing a huge increase in demand, they're having trouble keeping up with that. This is not a supply problem, but we're seeing a huge spike in demand.

We're talking to the industry about how best to manage that, openly and cooperatively with the petroleum and diesel industry, government and industry working together. JOURNALIST: Are you confident that the EV subsidy will remain? CHRIS BOWEN: Look, I've seen lots of speculation about the budget, most of which has been wrong.

The fact of the matter is it's a matter of public record. The Treasurer and I, as we had previously announced when we announced the EV tax cut, it would be reviewed at this time to ensure its efficacy and its ongoing efficiency, and that process is well underway. JOURNALIST: Minister, what about the household battery?

CHRIS BOWEN: It's extraordinarily popular. 265,000 houses as of today have put in a household battery, and we'll continue to roll it out. JOURNALIST: Are you worried about panic buying, not just for fuel but also potentially for food given the headlines about what farmers are saying? CHRIS BOWEN: Well, I think what government has to do is provide the factual messages that while there are challenges in the international supply chain, there's absolutely no reason for panic anything.

Panicking full stop, panic buying, panic anything. Because unlike previously when there was-- petrol and diesel reserves were held under Angus Taylor in Texas, they're held now in Geelong and Brisbane for easy access. Now, the government will respond to the changing circumstances as and when required.

We have a minimum stock obligation. If it's necessary to call on that, we will. It's a ministerial decision.

I'm in very close contact with the industry. When and if it's necessary to call on that, we will. But at this point, there is no need to call on that because it is playing the essential role of, in addition to all the petrol and diesel that's in every service station around Australia, being an additional supplier should things worsen internationally.

JOURNALIST: There's also reports about a cut to funding for renewable energy projects in the press today, along with the EV stuff and the home battery reports. At a time of a new fossil fuel crisis, is this the time when government should be [inaudible] CHRIS BOWEN: [Talks over] Giles, I found that story in the Sun Herald yesterday quite extraordinary. It said there's going to be no new big funding for renewable energy.

You might as well say there's going to be no big new funding for hospitals or schools. We've had record investment in all those things and that investment will continue. It will continue.

I understand it's budget time, it's not my first rodeo. People are going to engage in speculation. The vast majority of the speculation I read in the newspapers is wrong.

The day the budget will be revealed by the Treasurer will be budget night. JOURNALIST: How long will it take this war to last before it starts to become a problem for Australia? CHRIS BOWEN: Look, I think, Hugh, that's an impossible question, to be honest, to be frank with you.

I'm not being critical, but you're asking an impossible hypothetical. Obviously, it's in everyone's best interest that the situation returns to more normal events as quickly as possible, most particularly those in the Middle East and those people travelling and those who live in the Middle East, but for all of us. But, as I said, is point to the fact that measures we put in place in 2022 and 2023, whether it's electricity, now we're much less reliant on gas in our industry- in our electricity system, than we were in 2022.

The last summer we used 1.5 terawatts of gas. In the summer of 2022 we used 2.7 terawatts of gas. I mean, that means while gas supply continues to be important, and has important impacts on pricing, nevertheless, the progress we've made on things like batteries and electrification mean that we are better prepared.

Likewise, the same sort of planning we put in place for things like petrol and diesel, as we transition to more EVs, and the fundamental point that Giles made is correct, it's important that we ensure good supply of petrol and diesel, but there are some in politics who argue that this crisis shows we should be more reliant on petrol and diesel. How they make that leap of logic is beyond me.

JOURNALIST: [Indistinct] just said inside just now, that governments need to be cutting subsidies for fossil fuels. Is that something your government will consider? CHRIS BOWEN: The way you move away from fossil fuel use is to build renewable energy.

We just hit 51 per cent of renewable energy in the grid. We're seeing continued strong pack-up of renewable energy in this quarter. That's the way you transition away from fossil fuels, as the COP has decided to do, and that’s what we’ll continue to do.

JOURNALIST: What about cutting subsidies? Fund your investments in [indistinct] CHRIS BOWEN: Well, we’ve made massive investments in renewable energy, like the big investment we made twice last year, first round and the second round of big investments in home batteries, which have been taken up by Australians in huge numbers. I’ve got a speech to make, and then I’ve got to get to Canberra.

Thanks, guys. We acknowledge the Traditional Owners of country throughout Australia and recognise their continuing connection to land, waters and culture. We pay our respects to their Elders past, present and emerging.