Australian Prime Minister Anthony Albanese has confirmed the federal government has used new fuel security powers to underwrite the purchase of 100 million litres of diesel, as global supply pressures intensify amid conflict in the Middle East.
The diesel — sourced from Brunei and South Korea in two shipments totalling 570,000 barrels — was secured under legislation passed last month, allowing the government to take on financial risk for fuel imports that may otherwise be too costly. The shipments were purchased by Viva Energy.
“This is the first of many expected shipments secured under the government’s new strategic reserve powers, with the support of Export Finance Australia,” Albanese said.
It is understood Australia consumes around 40 to 70 million litres of fuel per day, meaning the 100 million litres secured would cover only roughly one-and-a-half to two days of national demand.
The move comes as authorities respond to both global disruptions — including the effective closure of the Strait of Hormuz — and domestic concerns following a fire at Viva Energy’s Geelong refinery. Albanese described the incident as involving “distressing scenes” but noted no injuries, warning there would “clearly” be consequences for fuel supply.
During talks in Kuala Lumpur with Malaysian Prime Minister Anwar Ibrahim, Australia also secured a “no surprises” agreement on energy trade, part of a broader diplomatic push across the region to stabilise supply chains.
“This is a conflict that has caused unprecedented energy supply shocks right across the globe,” Albanese said.
“We’re working together to prepare and shield our citizens from the worst of the impacts of this global conflict.”
Malaysia, a key supplier of Australia’s fuel, reaffirmed its role as a reliable partner, with Ibrahim warning global markets remain under strain. “The Strait of Hormuz has been effectively closed for nearly seven weeks… the consequences are pummelling through the seven seas,” he said.
The government argues these agreements are essential as Australia remains heavily reliant on imported fuel, while critics have questioned the Prime Minister’s extensive travel — including more than 25,000km since late February — as part of the diplomatic effort.
Opposition figures labelled the travel “hypocritical” amid a national campaign urging Australians to reduce fuel use. “This is pure hypocrisy… pick up the phone not the boarding pass,” said opposition spokesman Tony Pasin.
Albanese has defended the trips as necessary, stating: “Australia is facing a more uncertain world, and therefore the certainty of those clear, close relationships is more important than ever.”
Source: ABC News
