Albanese brings forward Singapore trip and speaks with China in bid to shore up petrol shipments to Australia | Petrol prices
Anthony Albanese will fly to Singapore, Australia’s biggest source of oil, this week as the government launches an international bid to prevent fuel prices from rising.
Despite the federal government’s fuel cut last week, diesel is getting expensive again and gasoline prices have stopped falling.
Albanese met with Chinese premier Li Qiang on Tuesday night as part of growing diplomatic efforts to bolster supply. In the reading of the call made by Australia, it was stated that the two leaders agreed to increase intergovernmental communication to support regional energy security.
It has not been confirmed whether Albanese’s visit to Singapore will directly deliver any additional supplies to Australia, but the Prime Minister said fuel would be on the agenda at a time when the government is scouring the world for extra shipments of diesel and petrol.
“This will be important and we will continue discussions about securing our oil, diesel and LNG trade,” Albanese said on Tuesday, adding that he had planned to visit Singapore later in the year but that had now been brought forward.
Citing a joint statement with Wong last month, he said Singapore and Australia were committed to “keeping fuel flowing between both countries and working together to strengthen the resilience of the energy supply chain.”
“Together, we share our concerns, including the situation in the Middle East and its consequences for both our nations. We share a deep strategic trust,” he said.
“We do not need to wait for this global crisis to end. We must build resilience into the system. We are in a safe position now. But relationships with our international partners are an important part of keeping our fuel supplies flowing.”
Fuel delivery prices remain at historic highs in Australia’s five largest cities. Wholesale unleaded prices stopped falling on Tuesday after falling nearly 40 cents a liter since March 26, including the government’s 32-cent fuel excise tax cuts, according to data from the Australian Petroleum Institute.
Falling wholesale prices had caused retailers to cut their prices in the capital cities by around 33 cents per liter since the end of March. Prices continued to fall on Tuesday, but wholesale prices remaining stable will make further declines impossible unless retailers sacrifice profit margins.
Diesel prices have risen for fuel companies and drivers; Terminal prices were 10 cents per liter higher after they were briefly postponed following fuel excise tax cuts.
US President Donald Trump on Tuesday renewed his threat to target Iran’s civilian infrastructure such as bridges and power plants if negotiations for a ceasefire and reopening of the Strait of Hormuz, a key global oil shipping route, fail.
Trump also reiterated his criticism of NATO and singled out Australia, among others.
“They weren’t helpful at all,” he said. “It’s not just NATO. You know who else didn’t help us? South Korea didn’t help us. You know who else didn’t help us? Australia didn’t help us. You know who else didn’t help us? Japan.”
Federal Energy Minister Chris Bowen said just 3% of petrol stations around Australia, or 241 outlets, were out of diesel as of Tuesday. Among these, 125 are in New South Wales, 40 in Victoria, 34 in Queensland and 20 in Western Australia.
There were fears within the government that the busy Easter holiday period could lead to a sudden increase in fuel demand and potential supply disruptions. However, Albanese expressed his gratitude after his televised speech on Wednesday night, asking Australians to consider their fuel use and use public transport if possible.
“I’d like to recognize the efforts Australians made over the Easter long weekend to save fuel and get on with life. We saw very few cancellations. That was a good thing,” he said.
While Bowen said over the weekend that Australia’s fuel stock levels remained “fairly stable” – with 39 days of gasoline, 30 days of jet fuel and 29 days of diesel stocks – the government is looking for ways to secure greater supplies as the conflict in the Middle East continues.
Opposition leader Angus Taylor has again demanded the government provide more fuel supply chain data, including ships arriving in Australia and the amount of fuel produced onshore. He also called once again for Australia to drill for more oil.
“We need those details and we need to get them on a daily basis… We also need a longer-term plan to make sure this never happens again. For us to have the fuel security that we need as a country, drilling in this country means making the most of our natural resources, and that means drilling more oil and gas in this country,” he said.
Last month, Albanese issued a joint statement with Singapore’s prime minister, Lawrence Wong, confirming that the two countries would continue energy trade. Singapore is a major source of Australian oil, accounting for 26% of refined fuel imports, 55% of petroleum imports, 22% of jet fuel and 15% of diesel imports.
Following the Malaysian government’s announcement that it will “put our own needs first”, energy experts have growing concerns that countries will start keeping oil for their own domestic consumption rather than exporting it in normal quantities.
Bowen said fuel companies had supply contracts “well into May” and “deals are being struck” using the government’s new powers to undertake fuel shipments, foreshadowing more announcements in the coming days.
