Asian countries assure Australia ‘normal supply’ of fuel will continue as Albanese focuses on averting shortages | Petrol prices
Asian trading partners have reassured Australia that “normal fuel supplies” will continue amid conflict in the Middle East, as the government prepares to intensify efforts to prevent gasoline and diesel shortages.
As the Iran war and the closure of the Strait of Hormuz damage the global oil market, the federal government is seeking supply guarantees from countries such as Singapore, South Korea, Malaysia and Japan.
Australia imports approximately 90% of its refined fuel, most of which is sourced from Asian refineries; This means it will be highly vulnerable if other countries take urgent steps to prioritize stocks for domestic use.
Speaking to Sky News on Sunday, deputy foreign secretary Matt Thistlethwaite said Japanese and South Korean government ministers had given assurances at meetings last week that “normal supply” would continue.
Prime Minister Anthony Albanese signed a joint declaration with Singapore on two-way energy trade. 55% of Australian oil 15% of imports and diesel.
Nighty Last week, it was reported that preparations were underway for the prime minister to travel to Singapore after the Easter holiday to support Australia’s fuel supply.
The Prime Minister’s office did not confirm whether a trip was planned, but sources said Albanese’s attention would focus on fuel safety, including his travel plans in the coming period.
Energy Minister Chris Bowen said refined fuel was now sourced from countries such as the United States and Mexico as oil and diesel suppliers diversified their supply chains.
Many Asian countries are major buyers of Australia’s liquefied natural gas, which the government uses as leverage in talks over fuel supplies.
Sensitive negotiations could see the government delay introducing a new windfall profits tax on gas companies, which the treasury has been asked to model ahead of the May 12 budget.
Japan and South Korea in particular have consistently opposed policies they claim could disrupt LNG exports, including new taxes.
Japanese Prime Minister Sanae Takaichi plans to travel to Australia in the coming weeks to discuss rare earths and efforts to reopen the Strait of Hormuz, Nikkei Asia reported Saturday.
Asked about the gas profits tax at the National Press Club last Thursday, Albanese signaled the government’s priority was to cement its reputation as a reliable gas exporter to help strengthen its case for maintaining fuel supplies.
“That’s the equivalent, if you will. And I think that’s very important as we move forward. So, to be clear, our first priority is supply. Supply depends on these relationships being respected,” the Prime Minister said.
Last week Labor backed a Greens motion to launch a parliamentary inquiry into the taxation regime for oil and gas companies, giving advocates another reason to believe the government is open to change.
The investigation is expected to be reported on May 7, five days before the budget.
Multiple government sources have confirmed that a final decision on the new gas tax has not yet been made.
