Run on the 18th of June, Exercise Tanker, which is a simulation and did not involve the actual implementation of emergency response measures or rationing of fuel at outlets, was designed to test the nation's ability to respond in the event of a major fuels crisis.

The exercise was run by Federal Industry Minister Ian Macfarlane who initiated planning of the simulation last year to test the plans, procedures and communication mechanisms, which are currently in place under the 1984 Act but have never been tested.

In the event of a fuel shortage having national implications, the Act provides the authority for the Commonwealth Government to control fuel distribution and sales rationing across Australia. The State and Territory Governments are delegated responsibility for planning and coordinating their own emergency responses. All jurisdictions were involved in the exercise.

"It's unlikely that a national regulatory response would ever be required, but the high economic and social cost of an emergency means it is absolutely essential to be as prepared as possible. That's why the Commonwealth has decided to test the procedures," said Acting Industry Minister Joe Hockey.

In 2001-02, Australian refineries produced 42,427 megalitres of fuel compared with consumption of 45,288 megalitres, or 94% of Australia's fuel requirements, with imports providing the balance.

The industry holds stocks of petroleum products within the supply chain. As at March 2003, total stocks represented 54 days of normal consumption.