Asian trading partners have reassured Australia that the 'normal supply' of fuel will continue despite the Middle East conflict, as the government intensifies efforts to avert shortages of petrol and diesel. Australia imports about 90% of its refined fuel, much of which comes from Asian refineries, making it highly vulnerable to supply disruptions.
Assistant Foreign Minister Matt Thistlethwaite said on Sunday that government ministers from Japan and South Korea provided assurances during meetings in the past week. 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 government is also leveraging Australia's liquefied natural gas exports to Asian nations in negotiations over fuel supplies. Energy Minister Chris Bowen noted that refined fuel is now being sourced from countries including the US and Mexico as suppliers diversify their supply chains.
The delicate negotiations may cause the government to delay 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 have consistently opposed policies that could disrupt LNG exports, including new taxes.
Prime Minister Albanese signalled that the government's priority is consolidating its reputation as a reliable gas exporter to strengthen its case for continued fuel supplies. 'That's the quid pro quo, if you like. Our first priority is supply,' he said at the National Press Club last Thursday.
