Media Release

KAP Leader and Federal Member for Kennedy Bob Katter has asked a Question of the Prime Minister in Parliament regarding Australia’s unsustainable dependence on imported fuel.

Mr Katter’s Question, follows the release of the NRMA Motoring and Services report earlier this week, which revealed that our oil refineries are closing rapidly, our dependence on imported fuel for transport has increased to 90% and our indigenous crude oil production has dwindled to 21,268 ML.

“Australia’s self-sufficiency in oil throughout the last half century saw in 2001 under $1 billion going to the Middle East; Australia now sends $23B.

“Since foreign oil pays only 6c tax whereas Australian ethanol pays 40c and since Industry Minister Macfarlane is proposing a bowser tax of 40c?

“Is the Prime Minister going to adopt the bio-fuels policy of the USA & Brazil (both nearing self-sufficiency) or the Non-Industry Minister’s Policy which the NRMA report, says will see the abolition of all Australian fuel production within 15 years?,” Mr Katter questioned.

Mr Katter said that it was very gratifying that the Prime Minister has faith in businesses which have made investments in Australia’s fuel industry and his confirmation that the Government will ensure a level playing field between domestically produced and imported fuel.

The NRMA Report states that Australia has 60 days of liquid fuel stockholdings in the case of an emergency, natural disaster, military confrontation or crisis whilst the domestic supply of a specialised type of fuel required by the Australian Navy (F44) has come under threat.

“With tensions in the Middle East and political unrest, being highly dependent on imported fuels Australia’s fuel security is running on empty and national security is being put at risk,” said Mr Katter.

“If the Federal Government does not immediately implement an ethanol mandate (like the rest of the world), support Australian biofuel industries, we will soon live in a country that does not have the ability to produce a single litre of fuel.

“The Middle East has a noose around Australia’s fuel security and without a biofuel mandate, within 15 years we will be entirely dependent on imported fuel,” Mr Katter said.

For further information please see: NRMA’s Australia’s Liquid Fuel Security Part 2, February 2014