Government to Support Fuel and Fertiliser Imports Amid Supply Concerns
The Australian government will assume financial risk for importing vital products impacted by the Middle East conflict to increase supplies of petrol, diesel, and fertiliser within the country.
Prime Minister Anthony Albanese announced new fuel security powers on Saturday following a month marked by rising diesel and petrol prices and widespread shortages at service stations, especially in regional areas.
On Monday, the government will propose amendments to Australia’s export finance laws enabling the use of public funds to underwrite purchases of additional shipments of fuel, fertiliser, and other essential goods.
“Put simply, we will use Export Finance Australia to underwrite the purchase of shiploads of fuel that will add to supply here in Australia,” Albanese said during a press conference in Sydney.
“This support from the government will not be business as usual: it has to be additional supplies that are available on the international market.”
Albanese explained that these measures aim to provide importers with the confidence to secure extra supplies, including from additional and discretionary cargoes, by reducing financial risk.
The extra fuel could address uncontracted demand and assist independent distributors, who supply much of regional Australia and frequently purchase petrol and diesel on the wholesale market.
Independent distributors have reported difficulties obtaining sufficient supply from major companies that import most of the country’s petrol and diesel, resulting in some service stations running dry.
“We want more fuel here, and we want to make sure it gets to the right place as well,” Albanese stated.
