Diplomacy provides quick relief for PM’s political headache – but not underlying condition
Singapore: The Istana, the residence of Singapore’s classical, colonial-era leaders, is a long way from Sydney and Melbourne. Despite the rich setting and distance, Anthony Albanese’s message was aimed directly at Australia’s suburbs and regions.
It is rare that the purpose of a prime minister’s trip abroad is so relevant to the daily lives of Australians. Jargon-heavy declarations have been replaced this week by the most retail political imperatives: securing oil to reduce oil prices and prevent a recession.
Fuel signs, where prices begin with a three, made it clear to Australians that the country was plunged into a new epidemic of inflation after years of high prices.
Although government ministers were off target and won over when the Iran war broke out in late February and oil shortages began last month, much of the crisis is out of Albanians’ control. Australians largely blame US President Donald Trump’s rash decision to attack Iran and Tehran’s move to close a key trade supply route that has disrupted the world economy.
So the prime minister’s decision to travel to Asia this week and next, at a time when his cabinet is meeting non-stop to finalize May’s federal budget, is a sign that he knows how fickle voters can be. Albanese’s approval ratings fell following his mixed response to the Bondi massacre. That meant his government had less skin to lose if it made a mistake similar to Scott Morrison’s vaccine procurement bungling.
The agreement signed with Singapore Prime Minister Lawrence Wong was not a legally binding guarantee of continued fuel shipments to Australia, which depends on Singapore for 55 percent of its oil. Such a deal was never likely to materialize, given Singaporean companies’ commitments to other customers, their commercial sensitivities and the fundamental uncertainty surrounding relations in the Middle East.
Wong came as close as possible to giving a firm guarantee, saying export bans “will not happen.” Crude oil shortages from the Middle East could change that.
In response to Wong’s statement, Albanese said: “Prime Minister [Wong] “He is as confident in private life as he is in public.”
Face-to-face meetings and mutual trust are critical in Asian diplomacy. Albanese and Wong have met several times before and call each other friends.
Albanese will point to the Singapore deal as a sign that Australia has a front-row seat if supply worsens in the coming months. Wong is in demand among world leaders, and Albanese was one of the first leaders to meet him in Singapore since the closure of the Strait of Hormuz.
The act of flying to Asia was as important as the text of the agreement in terms of public relations. The act of being seen to lead and take action was key, as was his questionable decision last week to speak on television just to announce little.
“Our friendships in the region are helping our farmers return home,” Albanese said, trying to turn a moment of high diplomacy into a local gain.
The test for Albanese was set up by Angus Taylor, who said on Friday that it was up to the prime minister to ensure that falling oil prices led to a fall in oil prices.
Gezi also highlighted the contradictions within the Labor Party’s economic model.
The possibility of a new tax on Australia’s gas exporters hung like a cloud over this visit. Labor’s need to find new revenue streams and left-wing demands to tax fossil fuel firms have put pressure on Australia to prove it will remain a reliable LNG exporter.
Standing on a balcony overlooking Singapore’s Jurong Island, the prime minister was stunned to see hundreds of oil tankers, dwarfing the number at Australia’s last two refineries. Albanese has hinted at increasing Australia’s refining capacity, which has dwindled under successive governments and contributed to the country’s paltry fuel stocks.
But Labor is effectively taxing Australia’s last two refineries through a policy known as the hedging mechanism to achieve its elusive green energy targets.
Albanese believes this joy will keep Australia’s economy afloat during a time of global turmoil. But this will only close the deep cracks in Australia’s self-sufficiency.
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Paul Sakkal is the Chief Political Correspondent. He has previously covered Victorian politics and won the Walkley award as well as the 2025 Press Gallery Journalist of the Year award. Contact him securely on Signal @paulsakkal.14.Connect with: X or email.
