MICHAEL ROWLAND: The Federal Energy Minister Angus Taylor joins us now from Canberra. Minister, good morning.

ANGUS TAYLOR: Good morning.

MICHAEL ROWLAND: What impact will all of this have on petrol prices here?

ANGUS TAYLOR: Well, Michael, the International Energy Agency tells us that there's no immediate threat to our fuel supplies here in Australia, and that there are ample commercial stocks, but they're monitoring the situation, as we are. Now, they are the organisation, globally, that keeps an eye on these things and manages those things, so they're in the best position to make the judgement, but as I say, we're certainly monitoring it very closely as I know the IEA is.

MICHAEL ROWLAND: Okay - but what of independent observers like the NAB there, talking about a 50 per cent increase in prices - is that likely in the days ahead?

ANGUS TAYLOR: I'm not going to forecast prices. I'm not in the business of doing that. But I will say that it's clear there's no immediate threat to our supplies, that's the crucial point here. Look, the hope here, Michael, is that production gets back going very quickly and certainly that's the aim and the expectation. We'll be watching it very, very closely, but as I say, there's no immediate threat. There are ample commercial stocks globally, and that's the key to making sure that this is as manageable as possible, this sort of disruption, the impact is minimised.

MICHAEL ROWLAND: It's an oil shock. These oil shocks happen. There's a lots concern about the Strait of Hormuz as well, as you know. Doesn't this highlight, Minister, the woefully inadequate nature of our oil reserves sitting at 28 days, the global minimum recommended is 90 days?

ANGUS TAYLOR: That's not right, our stocks are much higher than that.

MICHAEL ROWLAND: What are they at the moment?

ANGUS TAYLOR: Well, on our definition, they're close to 90 days and that includes stock on water, which is an important part of this. The point here is the impact will be determined by global stocks, not Australian stocks. This is a global disruption and usually oil shocks are. They are typically global and that's why the IEA over sees issues like it; we have to do our bit and we are doing our bit, but the important point here is there are ample global stocks available and that's why we don't expect there to be any immediate threat to fuel supplies to Australia or other countries around the world.

MICHAEL ROWLAND: Okay, I'm only just talking about hypothetically in case we get worse oil shocks in the future. You're not concerned about our oil reserves here?

ANGUS TAYLOR: We're constantly reviewing the situation. In fact, we're conducting a review right now to make sure we do have the right level of stocks by different fuel types and so on, and a number of recommendations have been brought forward as a result of that, which we're implementing, Michael. So this is an important issue, but the point I'm making is that most oil shocks are global. We have to do our bit - the IEA oversees a regime, of which we are part and for that reason, there are ample commercial stocks globally right now, and we expect there to be no immediate threat to Australia's fuel supplies as a result.

MICHAEL ROWLAND: Does the Australian Government have any information yet suggesting that Iran was behind these strikes?

ANGUS TAYLOR: Look, I'm not going to get into any attribution of this. I will condemn it though. I mean, attacks on civilian facilities like these are completely inappropriate and should be condemned, and I know many other countries around the world have, rightly, condemned them.

MICHAEL ROWLAND: Let's look at the ACCC report on power prices. Good and bad news. There's been a drop in standing prices for long-term customers. They win, but the ACCC has gone after the big three energy companies for perhaps not doing the right thing, as they should do, by new customers.

ANGUS TAYLOR: There's three bits of good news here. One is we've seen standing offer customers - those are the customers who haven't had time or are unable to negotiate a price - they've gained significant savings, up to almost $200 as a result of reforms that have been brought through. We've seen a significant reduction in those sneaky late payment fees that were traditionally charged by the energy companies and we're seeing more competition in the marketplace, and in particular the smaller retailers, the second tier retailers are being very aggressive in the market, which is fantastic. The bigger companies, less so, and this is an ongoing issue. It's part of the reason why we're bringing forward legislation to bring competition reform to this market, otherwise known as the big stick legislation. This is about holding the big energy companies to account when they do the wrong thing, Michael. This is important legislation. It's an important part of a suite of reforms that we're driving, and it's all about making sure that there is a fair deal on energy for Australia's hardworking households and small businesses, as well as industry, which of course is crucial to supplying so many jobs.

MICHAEL ROWLAND: If this legislation is passed, how will the forced break up, which is the worst-case scenario, I guess, for these energy companies, how will that bring down power prices?

ANGUS TAYLOR: This is about much more than that. I mean, this is reform which is across the various different markets that supply energy: the wholesale market, contract markets, retail markets. But importantly, there's a graduated set of remedies in place, right from notices to fines, through to, ultimately, if necessary, in the most egregious cases, divestment. This is about putting the big energy companies on notice and saying - you've got to do the right thing, you've simply got to do the right thing. Now the ACCC has told us that in the past, their conduct has been unacceptable and unsustainable and that's why we're bringing this legislation forward and it's why it's crucial now that this be supported by the Parliament to hold the big energy companies to account, make sure that they do the right thing by the hardworking consumers right across Australia.

MICHAEL ROWLAND: Okay. Angus Taylor, Energy Minister, thank you so much for joining us on News Breakfast.

ANGUS TAYLOR: Thanks Michael.