MELBOURNE, Australia (AP) — The Australian government has committed to supporting two major fuel companies in purchasing petroleum products at elevated costs, as Prime Minister Anthony Albanese cautioned Thursday that supply shortages will persist long-term regardless of whether the Iran ceasefire remains in effect.
Albanese announced that his administration has reached agreements with the nation’s top fuel suppliers, Ampol and Viva Energy, to guarantee contracts for gasoline and diesel purchased on spot markets at rates exceeding standard commercial prices.
Under these arrangements, the government will also maintain authority over fuel distribution strategies, prioritizing rural communities and agricultural regions where service stations have experienced shortages in recent weeks, according to Albanese.
“This will have a long tail, which is why after this we will travel to Singapore,” Albanese told reporters at an Ampol refinery in Australian city of Brisbane.
“I’m looking forward to a constructive meeting with Prime Minister Lawrence Wong tomorrow,” Albanese said.
“We don’t preempt one-on-one meetings at leaders’ levels, but the fact that we’re being welcomed at relatively short notice to Singapore speaks about the strength of the relationship,” he added.
Singapore officials indicated that Albanese’s upcoming visit represents part of ongoing regional efforts to maintain fuel supply chains by enhancing Australia’s energy access, according to a government statement from Singapore.
The two nations maintain significant energy trade relationships, with Australia serving as Singapore’s second-biggest liquefied natural gas provider while Singapore ranks as Australia’s primary source of refined petroleum products.
“This visit follows Australia and Singapore’s joint commitment to keep fuel flowing between both countries and to work together to strengthen energy supply chain resilience,” Singapore said.
The Prime Minister emphasized his administration’s rapid response to boost the country’s fuel availability.
Albanese characterized this week’s announcement regarding a two-week Middle East ceasefire as a positive development.
“If the ceasefire holds, that doesn’t mean that the world global capacity comes online in a week or a month. It will take as considerable period of time. This will have a long tail. That is very, very clear,” Albanese said.
