Australian Prime Minister Anthony Albanese arrived in Singapore Friday for crucial talks with Prime Minister Lawrence Wong as his nation works to stabilize fuel supplies during ongoing Middle East disruptions.
The meeting comes as Australia faces growing concerns over diesel shortages that have impacted farming and mining operations, while panic purchasing has left gas stations empty across the country.
Singapore serves as Asia’s central oil trading hub and provides Australia with its largest source of gasoline, along with significant amounts of diesel and aviation fuel.
“This is an important relationship at a time when fuel security is on the agenda, right around the globe due to the conflict in the Middle East,” Albanese told reporters following his Thursday evening arrival in Singapore.
The energy partnership flows both ways, with Australia providing approximately one-third of Singapore’s liquefied natural gas while receiving roughly 26% of its processed fuel from the island nation.
“Australia and Singapore are strategically aligned. We share values and we share a relationship of trust between each other. And that is why it’s so important that at difficult times in the world we can rely upon each other,” Albanese explained.
Australia joins other Asian nations grappling with fuel supply concerns following Iran’s blockade of the Strait of Hormuz, a waterway that previously handled about 20% of global oil transport before the current conflict with the United States and Israel.
Maritime traffic through the strait remains nearly frozen despite a tentative peace agreement between the U.S. and Iran.
Australia consumes approximately 1 million barrels of oil daily and imported 84% of its petroleum products last year. The nation now operates just two refineries, a sharp decline from eight facilities in 2005.
Singapore operates as a major Asian refining center with three facilities capable of processing about 1.2 million barrels daily, though output has decreased due to crude supply disruptions from the Strait of Hormuz closure.
Recent data from road insurer NRMA shows Singapore accounts for 54.7% of Australia’s gasoline imports, totaling nearly 6 billion liters. South Korea follows at 22.5%, with India third at 11.5% or 1.25 billion liters.
Since early March, Albanese and Foreign Minister Penny Wong have engaged in ongoing discussions with Asian partners regarding fuel security.
Australian officials report conducting talks with Japan, South Korea, Indonesia, Malaysia, Brunei, China and other regional allies.
