Singapore has pledged to Prime Minister Anthony Albanese its commitment to ensuring that more than half of Australia’s fuel imports will continue to be reliably delivered. This assurance comes amid growing concerns about fuel supply security.
Nine’s chief political editor, Charles Croucher, noted that this development would have little impact on fuel prices at the pumps. “Unfortunately, this is about fuel security rather than a surplus,” Croucher commented during an appearance on Today.
He cautioned consumers not to expect an increase in fuel availability that would drive prices down. “Don’t anticipate a sudden surge in supply leading to lower prices in Australia,” he added.
The situation remains challenging with over 170 service stations across the nation currently reporting diesel shortages.
Despite government interventions, such as a temporary reduction in fuel excise intended to alleviate pressure on consumers, diesel prices persist above the $3 per litre threshold.
Diesel prices are still hovering above the $3 per litre mark, despite government efforts to put downward pressure on oil companies with a temporary excise reduction.
The average price of diesel is $3.17 per litre and $2.20 for unleaded, according to Fuel Radar.
Singapore supplies just 15 per cent of Australia’s diesel and 55 per cent of the country’s petrol.
More mutual energy agreements may need to be struck elsewhere in the Asia to shore up Australia’s supply outside of reliance on the Strait of Hormuz, including Korea, Brunei and Japan.
Japan’s Prime Minister Sanae Takaichi is reportedly planning a visit to Australia later this month.
It is expected the Japanese PM will discuss the Strait of Hormuz and the supply of rare-earth minerals.
Energy Minister Chris Bowen has previously warned there will be a “long tail” even after the conflict ends and ships begin sailing through the Strait of Hormuz.
“Even if it opened today, there’s a big backlog of ships, there’s been gas plants bombed out of existence,” he told reporters on yesterday.
“The international energy situation will take a long time to recover from this. This is not over.”
He said Australia has 38 days’ worth of petrol, 31 days’ worth of diesel, and 28 days’ worth of jet fuel in reserve.
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