PM confirms 100 million litres diesel purchase to keep Australia moving

In Short:
– Australia secured two diesel shipments of 100 million litres from Brunei and South Korea amid Middle East conflict.
– New laws allow the government to underwrite fuel deliveries, addressing energy strategy and supply chain disruptions.

Australia has secured two fuel shipments to bolster its diesel supply amid ongoing conflict in the Middle East.Prime Minister Anthony Albanese made this announcement during a visit to Malaysia, revealing a purchase of 100 million litres from Brunei and South Korea.

Diesel supply boost

These shipments are the first expected under new laws allowing the federal government to underwrite the delivery of additional fuel cargoes.

Under these laws, while petrol companies purchase fuel, the government assumes financial risks associated with shipments.

The prime minister confirmed that two shipments of diesel, amounting to 570,000 barrels, have already been secured.

He stated that the ongoing conflict in the Middle East has significantly influenced Australia’s energy strategy.

Albanese noted the recent discussions with trading partners led to this practical outcome, which aims to direct fuel to key sectors, including agriculture.

Victoria’s Viva Energy purchased the additional diesel and operates the Geelong refinery currently under scrutiny following a recent fire.

Mr Albanese described the fire as distressing but highlighted that no one was harmed.

He acknowledged that the incident would impact fuel supply and promised cooperation with Viva Energy to address any offline operations swiftly.

During his meeting with Malaysian Prime Minister Anwar Ibrahim, further agreements on energy trade were established.

Agreement with Malaysia

Albanese’s trip marks another step in Australia’s energy security amid global supply chain disruptions.

Malaysia is a critical supplier of crude oil and refined fuels for Australia, contributing significantly to its diesel and petrol needs.

Australian resources play a vital role in powering the region, with agriculture also forming a strong trade backbone.

Recent agreements signed by Mr Albanese with Brunei and Singapore mirror this commitment to securing energy supplies.