Fuel Prices Stabilize Despite Government Excise Cut
Petrol prices in Australia have ceased to decline despite the federal government’s recent reduction of the fuel excise last week.
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Prime Minister’s Trip to Singapore to Address Fuel Supply
Prime Minister Anthony Albanese will travel to Singapore this week, Australia’s largest petrol supplier, as part of the government’s international efforts to secure additional shipments of diesel and petrol.
Diesel prices are rising again, and petrol prices have stopped falling despite the excise cut implemented last week.
It has not been confirmed whether Albanese’s visit will directly result in additional fuel supplies for Australia, but the Prime Minister indicated that fuel supply discussions will be a priority as the government seeks extra shipments globally.
“This will be important, and we’ll continue discussions on securing our trade in petrol, diesel and LNG,” Albanese said on Tuesday, noting the trip had been brought forward.
Referring to a joint statement made last month with Singaporean Prime Minister Lawrence Wong, Albanese emphasized the commitment between the two nations to maintain fuel flow and strengthen energy supply chain resilience.
“Together, we share concern over the situation in the Middle East, including the consequences for both of our nations. We share a deep strategic trust,” he said.
“We don’t need to wait for this global crisis to be over. We have to build resilience into the system. We are currently in a secure position. However, engaging with our international partners is an important part of keeping our fuel supply flowing.”
Fuel Price Trends and Wholesale Market Data
Fuel shipment prices have remained at historic highs across Australia’s five largest cities. Wholesale unleaded petrol prices stopped declining on Tuesday after falling approximately 40 cents per litre since 26 March, which included the government’s 32-cent fuel excise cut, according to data from the Australian Institute of Petroleum.
While falling wholesale prices had allowed retailers to reduce prices by about 33 cents per litre since late March in capital cities, the recent stabilization of wholesale prices means further retail price reductions are unlikely unless profit margins are sacrificed.
Diesel prices have increased for both fuel companies and motorists, with terminal prices rising by 10 cents per litre following a brief period of relief after the excise cuts.
US President Comments on Middle East and NATO
On Tuesday, US President Donald Trump warned of potential attacks on critical infrastructure such as bridges and power stations if ceasefire negotiations and efforts to reopen the Strait of Hormuz—a vital global oil shipping route—fail.
Trump also criticized NATO and singled out countries including Australia for not providing sufficient support.
“They haven’t helped 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.”
Fuel Station Outages and Government Response
Federal Energy Minister Chris Bowen reported that only 3% of petrol stations nationwide, equating to 241 outlets, had run out of diesel as of Tuesday. This included 125 stations in New South Wales, 40 in Victoria, 34 in Queensland, and 20 in Western Australia.
There were initial government concerns that the busy Easter holiday period might cause a surge in fuel demand and potential supply outages. However, following Prime Minister Albanese’s televised address on Wednesday night urging Australians to consider their fuel usage and opt for public transport where possible, the Prime Minister expressed appreciation for the public’s response.
“I would like to recognise the efforts of Australians over the Easter long weekend to conserve fuel and to get on with life. We saw very few cancellations. That was a good thing,” he said.
Fuel Stock Levels and Ongoing Supply Efforts
Energy Minister Bowen noted over the weekend that Australia’s fuel stock levels remained relatively stable, with 39 days of petrol, 30 days of jet fuel, and 29 days of diesel in reserves.
Despite this, the government continues to pursue additional fuel supplies as the conflict in the Middle East persists.
Opposition Calls for Transparency and Increased Domestic Production
Opposition Leader Angus Taylor reiterated demands for the government to provide more comprehensive fuel supply chain data, including details on incoming shipments and domestic fuel production levels. He also called for a commitment to increase domestic drilling for oil.
“We need to have those details and we need to have them on a daily basis … We also need a longer-term plan to ensure this never happens again. That we have the fuel security we need as a country and that means drilling, making the absolute most of our natural resources in this country and that means drilling for more oil and gas in this country,” he said.
Australia-Singapore Energy Trade and Regional Supply Challenges
Last month, Albanese and Singaporean Prime Minister Lawrence Wong reaffirmed the commitment of both countries to continue energy trade. Singapore is a major source of Australia’s oil imports, accounting for 26% of refined fuel imports, 55% of petrol imports, 22% of jet fuel, and 15% of diesel.
There have been recent disruptions in regional supply, with Malaysia indicating that it would prioritize domestic needs over exports, affecting usual export volumes.
Minister Bowen stated that fuel companies have supply contracts extending into May and that new deals are being negotiated using government powers to underwrite fuel shipments, with further announcements expected in the coming days.
