Australia will amend export-finance laws to underwrite private fuel purchases, aiming to secure supply amid global disruptions from the Iran conflict.
SYDNEY: Australia will amend its export-finance laws to bolster national fuel security. Prime Minister Anthony Albanese announced the move as the conflict involving Iran continues to disrupt global supply chains.
The new powers will enable the government to underwrite private sector fuel purchases. Australia’s export-finance agency will use these powers to help secure shipments and add to local supply.
“Today, I announce that Australia will establish new powers to get fuel here for Australians,” Albanese said in televised remarks. “New fuel security powers will enable the government to underwrite the purchase of fuel by the private sector.”
The centre-left Labor government will introduce the necessary amendments to parliament on Monday. This action addresses vulnerabilities in a nation that imports about 90% of its fuel.
Australia has experienced localised shortages since attacks on Iran began a month ago. The widening conflict has disrupted the global fuel supply, affecting shipments to Australia.
Energy Minister Chris Bowen stated Australia currently holds 39 days’ worth of petrol reserves. The nation also has 30 days of diesel and jet fuel in reserve.
The government said this week that overall supply remains strong. This assessment comes despite the cancellation of six fuel shipments from Asia and hundreds of service stations running out of gasoline or diesel.
