Source: Prime Minister of Australia
he Albanese Government is acting to shield Australia against any future fuel supply chain disruptions, by establishing new fuel security powers, enabling government to work with fuel suppliers to keep fuel flowing to Australia.
Next week the Government will introduce amendments to the Export Finance and Insurance Corporation Act, formalising the Commonwealth’s ability to underwrite additional cargoes and other vital strategic reserves as needed.
We are already in discussions with local and international fuel suppliers to help them source additional cargoes as needed to keep our nation and our people moving.
Our focus will be on ensuring additional supply helps address regional shortages and critical supply gaps.
The deal making expertise of Export Finance Australia will allow them to enter contracts of insurance or indemnity, give guarantees, make loans, or enter arrangements needed to help secure fuel supply from international markets.
Commonwealth powers will only be used to help acquire additional supply that is valuable for Australia’s fuel security and where would be cost prohibitive for private suppliers to source on commercial terms without government support.
Support will not replace or subsidise fuel that importers are already contracted to supply.
While Australia’s fuel supply outlook remains secure over the near term due to the actions the Government has taken to date, the Government has been clear – the longer this war goes the worse the impacts will be.
We are acting now to prepare and shield Australians from the worst of it.
Despite stable national supply, global price pressures and a doubling in demand has seen parts of Australia’s regional fuel market come under significant strain. This has had an unacceptable impact on regional customers who source their fuel this way, including farmers.
The Fuel Security powers help to address this by giving suppliers confidence to secure additional and discretionary cargoes – which will be used to service uncontracted demand, including regional and independent fuel suppliers.
Eligibility for underwriting support will be structured to ensure additional supply can be delivered quickly through trusted operators with the capability and networks to get fuel where it needs to go.
Our Government is undertaking every practical measure required to shield our nation from the worst of this global uncertainty.
Ensuring our farmers, our regional communities and the services all Australians rely on can continue to access the fuel they need.
Across the board, the Albanese Government has been working through and planning for the impacts of this crisis and protecting Australians from the worst of this global challenge.