Asian countries assure Australia ‘normal supply’ of fuel will continue as Albanese focuses on averting shortages

Australian prime minister Anthony Albanese. Delicate negotiations with Asian trading partners could cause the Albanese government to put off introducing a new windfall profit tax on gas companies. Photograph: Lukas Coch/AAP View image in fullscreen Australian prime minister Anthony Albanese. Delicate negotiations with Asian trading partners could cause the Albanese government to put off introducing a new windfall profit tax on gas companies. Photograph: Lukas Coch/AAP Asian countries assure Australia ‘normal supply’ of fuel will continue as Albanese focuses on averting shortages Federal government chases supply guarantees from countries including Singapore, South Korea, Malaysia and Japan amid Iran war Track current petrol and diesel prices across Australia Get our breaking news email, free app or daily news podcast Asian trading partners have reassured Australia that the “normal supply” of fuel will continue amid the Middle East conflict, as the government prepares to intensify efforts to avert shortages of petrol and diesel. The federal government has been chasing supply guarantees from countries including Singapore, South Korea, Malaysia and Japan as the Iran war and closure of the Strait of Hormuz wreaks havoc on the global oil market. Australia imports about 90% of its refined fuel, much of which is sourced from Asian refineries, meaning it is highly vulnerable if other countries take emergency steps to prioritise stocks for domestic use. Speaking to Sky News on Sunday, the assistant foreign minister, Matt Thistlethwaite, said government ministers from Japan and South Korea provided assurances that “normal supply” will continue during meetings in the past week. The prime minister, Anthony Albanese, has already signed a joint statement on two-way energy trade with Singapore, which supplies about 55% of Australia’s petrol imports and 15% of diesel. The Nightly last week reported that preparations were underway for the prime minister to travel to Singapore after the Easter break to help shore up Australia’s fuel supplies. The prime minister’s office would not confirm if a trip was planned but sources said Albanese’s attention over the coming period, including travel plans, would be focused on fuel security. The energy minister, Chris Bowen, said refined fuel was now being sourced from countries including the US and Mexico as petrol and diesel suppliers diversify their supply chains. A host of Asian nations are major buyers of Australian liquefied natural gas, which the government has been using as leverage in talks over fuel supplies. The delicate negotiations could cause the government to put off introducing a new windfall profit tax on gas companies, which the treasury was asked to model ahead of the 12 May budget. Japan and South Korea, in particular, have consistently opposed policies that they claim could disrupt LNG exports – including new taxes. The Japanese prime minister, Sanae Takaichi, is planning to travel to Australia in coming weeks to discuss rare earths and efforts to re-open the Strait of Hormuz, Nikkei Asia reported on Saturday. Asked about a gas profits tax at the National Press Club last Thursday, Albanese signalled the government’s priority was consolidating its reputation as a reliable gas exporter to help strengthen its case to continue receiving fuel supplies. “That’s the quid pro quo, if you like. And I think that is very important as we go forward. So, to be clear, our first priority is supply. Supply depends upon those relationships being adhered to,” the prime minister said. Labor last week supported a Greens motions to establish a parliamentary inquiry into the taxation regime for oil and gas companies, giving advocates fresh cause to believe the government was open to the change. The inquiry is due to report on 7 May – five days before the budget. Several government sources confirmed a final decision on a new gas tax was yet to be made. Explore more on these topics Petrol prices Iran news Share Reuse this content