Six fuel ships bound for Australia have been cancelled or deferred, Energy Minister Chris Bowen confirmed on Sunday. The vessels, originating from Malaysia, Singapore, and South Korea, were expected to arrive next month but have been withdrawn amid global supply disruptions. Bowen stated that the federal government is working to replace the shipments, with some already substituted.
Australia typically receives about 80 oil shipments per month, mainly from Asia. However, Bowen conceded that the flow of oil to Asian refineries has slowed, impacting Australia. He described the situation as an 'uncertain environment' and emphasised that the government is undertaking all preparatory work to manage potential supply bumps.
Fuel reserves in Australia currently stand at 38 days of petrol and 30 days of diesel and jet fuel, slightly higher than before the crisis. Bowen warned that the weeks ahead could be more challenging, with disruptions expected for shipments arriving in late April and May.
Energy analysts have cautioned that major Asian producers like Malaysia and South Korea may cut exports to Australia to prioritise domestic needs. Kevin Morrison from the Institute for Energy Economics and Financial Analysis described a warning from Malaysian officials to prioritise their own needs as 'really significant'. He noted that South Korea, Japan, and India are also vulnerable due to heavy reliance on oil imports.
Bowen ruled out invoking fuel rationing laws in the short term, urging Australians to buy only as much fuel as needed. He also recommended minimising fuel use by working from home where possible, following advice from the International Energy Agency. Australia's two domestic refineries are operating at full capacity, refining about 20% of the country's fuel.
In response to the crisis, Nationals leader Matt Canavan called for oil drilling in the Great Australian Bight, echoing Donald Trump's 'drill baby drill' slogan. He argued that without new domestic oil projects, Australia would remain vulnerable to unstable regions and international conflicts.
