WA Premier Roger Cook expects tighter fuel restrictions are around the corner as uncertainty looms over the length of a US blockade on the Strait of Hormuz.
WA Premier Roger Cook expects tighter fuel restrictions are around the corner as uncertainty grows over the length of a US blockade on the Strait of Hormuz.
Australia is currently under level two restrictions in its four-level system, which mostly focuses on voluntary behaviour changes and data capture to reduce fuel use.
Mixed messages continued overnight about the progress of negotiations between the US and Iran to reopen the Strait, which is a critical shipping route for global oil supply.
Speaking at a Business News event on Thursday morning, Mr Cook said he had no confidence Australia could avoid moving to level three restrictions.
Such a move would see federal and state governments take more direct action to reduce fuel consumption such as targeted consumer reductions, relaxing fuel standards, or logistics efficiency measures.
Mr Cook said the government was doing what it could to shelter the state from the worst of war’s impact.
“I think we need to be aware that this situation could get worse before it gets better,” he said.
“Even if the Strait of Hormuz was opened tomorrow, this whole issue and the shocks it has created has a long tail.”
Mr Cook said heightened restrictions would focus fuel supply on industry, and work to reduce retail fuel consumption.
Level four would necessitate strict rationing of fuel to ensure supply reaches critical sectors.
He added Western Australia’s status as a major LNG exporter to South East Asia had given Prime Minister Anthony Albaense the clout overseas to ensure fuel and fertiliser kept flowing into the nation’s port.
Under questioning about making biofuels domestically, Mr Cook said the crisis was a “wake up call” for WA to make more products on home soil.
Five major oilseed crushing plants and biorefineries are on the drawing board in Kwinana, Albany and Esperance at present.
On another pressure point facing industry, the beginning of industrial action against BHP by about 60 Electrical Trade Union members in the Pilbara, the Premier urged both parties to have a good think about the state’s economy.
“We respect and indeed admire the opportunity for workers to be collectively represented by their union,” he said.
“If industrial action is escalated and protracted that just leads to job losses, it doesn’t necessarily lead to better rights for workers.
“We need to be aware of the fact our activities can impact on our reputation and our economic growth.”
Mr Cook also took time to call for cooler heads in the nation’s migration debate.
His rebuke on Thursday morning comes after Federal Nationals leader Matt Canavan on Wednesday said Australia needed to “discriminate” on values when deciding who gets to live here.
“[They are] trying to divide the community, raise fear, raise hatred,” Mr Cook said.
“My message to the business community is you have to stamp this debate out.
“If WA is going to go forward, we have to have a strong skilled migration program, we have to continue to diversify our culture and skills base, we have to work together to create a cohesive community.
“This is starting to really infect some of the major political parties as well rather than the right-wing fringe, and it can be so destructive to our community.”
On the looming 2026-27 state budget Mr Cook held his cards closer to his chest.
He said he would have “loved” more money for the health department when he was health minister in 2017, and that the state was looking at improving the prison remand system and the transition of rehabilitated prisoners out of corrective services facilities.
