PM Confirms Securing 100 Million Litres of Diesel with New Powers
The prime minister has confirmed the federal government has used its new powers to underwrite fuel deliveries. The move supports securing 100 million litres of diesel by backing two cargoes already purchased.
Purchase and legal framework
Two shipments of diesel were acquired from Brunei and South Korea. Together they total about 570,000 barrels.
Parliament passed the laws last month. The rules let petrol companies still buy fuel while the government assumes the financial risk for costly shipments.
Implementation and support
Export Finance Australia helped secure the transactions. Officials described the acquisitions as the first expected shipments under the strategic reserve powers.
The government stressed these powers enable sourcing additional fuel when markets are disrupted. The diesel can be directed to areas with the greatest need.
Context: regional diplomacy and energy security
The announcement came during a joint news conference in Kuala Lumpur with Malaysia’s prime minister. Australia and Malaysia agreed to an energy trade arrangement on a “no surprises” basis.
It follows similar supply agreements with Brunei and Singapore made earlier in the week. The moves form part of a broader push to protect domestic supply amid global disruptions.
Reasons cited by leaders
Leaders pointed to the war in the Middle East and strained shipping routes as drivers of the policy. They said the situation has caused major stress in global energy markets and supply chains.
Officials noted the agreements aim to shield citizens and keep essential goods, including food and fuel, moving between nations.
Local impact: Geelong refinery fire and response
Victoria’s Viva Energy refinery at Geelong caught fire on Wednesday night. The additional diesel was purchased by Viva Energy, the refinery’s operator.
No injuries were reported. The prime minister acknowledged the blaze would affect fuel supply and said the government would work with the company to restore operations.
Trade links and supply statistics
Malaysia is a key supplier of crude oil and refined fuels to Australia. It provides roughly 14% of Australia’s diesel, 10% of petrol, and 11% of jet fuel.
Australia also supplies most of Malaysia’s liquefied natural gas imports. Agricultural trade is significant, too, with about 60% of Malaysia’s wheat and 75% of its lamb and beef coming from Australia.
Next steps
Officials described the diesel purchase as the first of several expected shipments secured under the new strategic reserve powers. They said additional fuel can be routed to where it is most needed, including to farmers.
