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Australia to Underwrite Fuel Imports Amid Middle East Conflict Supply Fears

The Australian government will introduce legislation to allow its export credit agency to underwrite private sector purchases of fuel and other essentials, aiming to secure additional international supply. Prime Minister Anthony Albanese announced the measure to mitigate financial risk for importers and address soaring prices and regional shortages. The move comes as national stockpiles hold limited reserves of petrol, diesel, and jet fuel. The government is engaging with regional suppliers like Malaysia and will convene a national cabinet meeting to address the escalating crisis.

Key Points: Australia to Underwrite Fuel Imports for Supply Security

  • Gov't to underwrite fuel & fertiliser imports
  • Aim is to add new supply, not replace market
  • National stockpile levels revealed
  • Measures respond to soaring prices & shortages
  • Legislation to be introduced Monday
2 min read

Australian govt to underwrite fuel imports

PM Albanese announces govt will underwrite fuel, fertiliser imports via export agency to secure supply amid crisis and soaring prices.

"Put simply, we will use Export Finance Australia to underwrite the purchase of shiploads of fuel that will add to supply here in Australia. - Anthony Albanese"

Sydney, March 28

The Australian government will underwrite the purchase of essential products affected by the conflict in the Middle East under new fuel security measures announced by Prime Minister Anthony Albanese on Saturday.

Albanese and Chris Bowen, the minister for energy, told reporters in Sydney that the government will on Monday introduce legislation to the federal parliament that will allow the existing export credit agency to underwrite the purchase of fuel, fertiliser and other essentials by the private sector.

"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.

"This support from the government will not be business as usual: it has to be additional supplies that are available on the international market."

He said that the new measures would mitigate the financial risk for importers who secure additional supply.

It comes amid soaring fuel prices across Australia and widespread shortages in regional areas, reports Xinhua news agency.

Bowen said that Australia had 39 days of petrol, 30 days of diesel and 30 days of jet fuel in the national stockpile as of Saturday.

Prime Minister Anthony Albanese on Friday said Australia's fuel supply looks good in the short term, but it will get more difficult in the coming months.

Addressing a press conference in Parliament House in Canberra over the escalating fuel crisis facing the country, Albanese said the government is "working around the clock" to "have the strongest possible plan," and get ready and over-prepared for what may come.

Albanese noted his "positive" engagements with Malaysia, a critical supplier of oil to Australia, and with the wider ASEAN region.

Albanese will also convene a national cabinet meeting on Monday over the fuel crisis.

Earlier in the day, Opposition Leader Angus Taylor called on the government to temporarily halve the fuel excise for three months.

The government on Wednesday conceded that about 470 service stations around the country have run out of at least one type of fuel.

- IANS

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Reader Comments

R
Rohit P
Only 39 days of petrol stock? That's quite low for a developed nation. It shows how fragile global supply chains are. Our government should take note and accelerate our own energy security plans.
D
David E
A sensible step by the Albanese government to de-risk imports for private companies. Market interventions are sometimes necessary during a crisis. Hope it brings prices down for the common Aussie.
A
Aditya G
Reading this while paying ₹110 per litre. The whole world is feeling the pinch. While the Australian plan is good, it's a short-term fix. Long-term, every country, including India, needs to push harder on renewables and EVs.
S
Sarah B
Underwriting purchases is one thing, but where is the actual fuel coming from? The article says they're engaging with Malaysia and ASEAN. It highlights the importance of strong diplomatic ties for resource security—a lesson for all nations.
K
Karthik V
The opposition leader's suggestion to halve the fuel excise for three months sounds more directly helpful to citizens facing high prices. The government's underwriting plan helps companies, but will that benefit trickle down quickly enough? Just a thought.

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