The Albanese government has secured around 100 million litres of additional diesel under new Strategic Reserve powers, in a move aimed at protecting regional communities, farmers and essential services from worsening global fuel pressures linked to conflict in the Middle East.
The first shipments, sourced from Brunei and South Korea, mark the first fuel deliveries arranged under the government’s new reserve powers, which were introduced to help address supply shortfalls and reduce the risk of domestic disruptions.
Under the arrangement, Export Finance Australia has partnered with Viva Energy to support the purchase of more than 570,000 barrels of extra diesel for the Australian market. The government has also reached commercial agreements with Ampol, Park Fuels and IOR to help secure further supply where private operators may have struggled to do so on commercial terms alone.
The additional diesel is intended to be directed to the areas of greatest need, particularly regional Australia, where fuel shortages can quickly affect transport, agriculture and critical services.
Prime Minister Anthony Albanese said the agreement would strengthen Australia’s fuel security at a time of global uncertainty.
“This agreement strengthens Australia’s fuel security by ensuring additional cargoes are delivered to the domestic market when and where they are needed most,” he said.
“We’re taking every practical measure required to shield our nation and household budgets from the worst of this global uncertainty.”
Trade Minister Don Farrell said the government expected the effects of the Middle East conflict to continue for some time and was taking steps to secure supplies Australians depend on.
“We know that the impacts of this conflict will be with us for some time, and we are taking every possible step to secure what Australians need to keep our country moving,” he said.
Farrell said the new Strategic Reserve powers would extend beyond fuel and could also be used to support the supply of other key materials, including fertiliser and goods affected by the crisis.
Energy Minister Chris Bowen said the government was working closely with industry to ensure the extra fuel remained in Australia and was delivered where it was needed most.
“These cargoes are additional to existing contracted supply, are required to remain in Australia and will be directed to the industries and regions which need them the most,” he said.
The announcement came as Australia and Malaysia issued a joint statement reaffirming their shared commitment to open, rules-based trade in energy products, amid growing concern over the impact of the Middle East conflict on energy supply chains, prices and the flow of essential goods.
Both countries said they were deeply concerned about the escalation of the conflict and its possible effects across the region, particularly on oil and natural gas supply chains. They pledged to maintain open and stable trade flows in energy products and to deepen practical cooperation on energy security.
Australia and Malaysia said their longstanding relationship, backed by a Comprehensive Strategic Partnership, placed them in a strong position to work together on energy resilience, supply chain stability and the transition to cleaner energy.
The joint commitment also includes closer consultation on any developments that could disrupt supply or affect energy markets, as both governments seek to manage a more volatile global environment.
Taken together, the diesel shipments and the strengthened regional energy cooperation signal a broader effort by Canberra to protect Australia’s fuel security and cushion households and businesses from the fallout of an increasingly unstable global energy market.
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