Cutting fuel to Australia ‘won’t happen’, says Singapore PM, as Albanese secures pledge from our largest petrol source | Petrol prices
Australia’s biggest oil source has vowed not to cut supplies, while Singapore’s prime minister told Anthony Albanese that the fuel flow will continue despite the international crisis.
Albanese’s whistle-stop visit with Singaporean counterpart Lawrence Wong resulted in a new agreement that the two countries will continue to send fuel and liquefied natural gas to each other amid an “acute energy crisis” caused by war in the Middle East. Australia and Singapore will also add a legally binding addendum to their free trade agreements on key resources such as energy.
Although the visit to Singapore did not immediately lead to an announcement of additional fuel supplies to Australia – a fact quickly embraced by the Coalition opposition – the government said the visit would help secure fuel supplies.
“We don’t plan to restrict exports. We didn’t have to do this even in the darkest days of Covid, and we won’t do it during this energy crisis,” Wong said when asked whether Australia would receive preferential treatment if Singapore cut production.
“Assumption. It won’t happen.”
Singapore is Australia’s largest trading partner in southeast Asia and is considered one of Canberra’s closest strategic and economic partners. Australia is Singapore’s second largest LNG supplier, while Singapore is Australia’s largest oil supplier.
Singapore accounts for more than a quarter of Australia’s total refined fuel imports; this includes 55% of oil, 22% of jet fuel and 15% of diesel, valued at more than $10 billion. Australia supplies 32% of Singapore’s LNG, worth about $5 billion.
Albanese’s short trip to Singapore, which included only one full day, was not expected to provide immediate supplies of new fuel. But amid global supply shocks from the Middle East war and ongoing shipping disruptions across the Strait of Hormuz (further complicated by Israel’s ongoing bombing campaign in Lebanon), there are concerns that supplies from major fuel exporters could be disrupted. Albanese and his government have launched a major diplomatic offensive to ensure continued fuel imports from Australia, including leveraging our own gas and coal exports.
“These are difficult times, not just for Australia and Singapore, but for countries around the world,” Wong said.
“That’s why in times like these we must work closely, move faster and stand together. Not only to manage risk, but also to protect the well-being of our people.”
The joint statement adopted by Albanese and Wong said Australia and Singapore would “use maximum efforts to meet each other’s energy security needs” in refined fuels and LNG.
“We reiterated our commitment to support the flow of essential goods, including petroleum oils such as diesel and LNG, and agreed to intensify cooperation to facilitate the timely transport of goods and essential materials through improved coordination, efficient border and port processes, transparency and early consultation,” the statement said.
“We agreed on the need to coordinate our response to this global crisis so that both of our economies are stronger and more resilient for the future.”
“We recognize the importance of our countries’ role in each other’s energy security; Singapore is one of Australia’s largest suppliers of refined petroleum products and Australia is one of Singapore’s largest suppliers of liquefied natural gas.”
Although Albanese did not secure any additional fuel supplies during the visit, both sides said the agreement would secure continued supplies in the future.
“This isn’t just about managing today’s crisis. It’s about creating reliable supply lines for a more uncertain future,” Wong said.
Albanese spoke positively of Singapore being given greater access to additional Australian LNG. A new Singapore government body that centralizes gas imports will “look to Australia to consider more gas commercially and hopefully more long-term gas,” Wong said.
But Albanese appears to have downplayed the possibility of his government introducing a new tax on gas exports, as advocated by progressive campaigners, his own Labor members and even the Coalition shadow minister Andrew Hastie.
Asked whether such a measure would be included in the May federal budget, Albanese largely dodged the question but did not express support for the change.
“We have three priorities regarding energy, both now and in the near term, these are supply, supply and supply… the fourth one, if there is one, is the price below the supply,” he said.
Wong said Singapore would focus on diversifying its LNG supply, with price competition being the main concern, but added: “We hope to source more from Australia.”
