Australia’s refined fuels Achilles’ heel in the spotlight as Federal Minister’s race to secure Asian supplies

Anthony Albanese and Federal ministers have been scrambling to shore up refined fuel supplies as the de facto closure of the Strait of Hormuz has cast Australia’s heavy reliance on Asian markets for petrol, diesel and jet fuel into focus.

China, Malaysia, Singapore and Japan have been among nations the Albanese Government has engaged with in an international blitz to fix fuel gap.

Energy Minister Chris Bowen said while fuel shipments were continuing to come into Australia with contracts “well into May” continuing to engage international partners was important to shield the nation from further energy shocks.

We continue to engage very strongly with our international counterparts, particularly in Southeast Asia,” he said.

“We’ve been very pleased that our counterparts have recognised their role in being a reliable energy supplier to Australia when it comes to liquid fuels, just as they recognise our role and our history as reliable suppliers of other types of energy.”

Mr Bowen held talks with his Malaysian counterpart overnight, while Mr Albanese discussed regional energy security with China’s Li Qiang by phone.

Mr Albanese labelled his conversation with the Premier as “very constructive” across a range of topics.

“It went across the full range of topics. I don’t go into all of the details of private conversations that I have with leaders, but it was a very constructive conversation,” he said on Wednesday.

“It was certainly a positive discussion about the importance of trade between our two nations.”

His meeting with his Chinese counterpart comes after Beijing — which provides Australia more than 30 per cent of the nation’s jet fuel — implemented export restrictions to look after their domestic supplies energy disruptions linked to the Iran war.

The Prime Minister is also expected to travel to Singapore on Thursday for a meeting with PM Lawrence Wong.

Australia imports the most refined fuel from Singapore at about 26 per cent, followed by South Korea at 25pc, Malaysia 13pc — while the rest is mostly from Taiwan, India and China.

Singapore is the largest provider of petrol, supplying about 55 per cent of Australia’s domestic needs, while diesel is mostly from South Korea, Singapore and Malaysia.

The government’s coordinated international strategy has also dozens of engagements by Foreign Minister Penny Wong, Don Farrell in his trade portfolio, and agriculture minister Julie Collins’ to shore up fertiliser and urea supply chains for farmers.

Energy security and regional stability were also front and centre for Defence Minister Richard Marles while in Japan on Wednesday for a strategic coordination meeting with counterpart Minister Shinjirō Koizumi.

Mr Marles trip comes amid speculation new Japanese Prime Minister Sanae Takaichi is preparing a snap visit to Canberra to finalise trade deals.

Mr Bowen said while Australia was working hard to ensure shipments continued he said it was a “let’s see” situation on where the ceasefire in the Middle East would hold.

“I’m able to say not a single ship that has been expected to arrive in Australia has been interrupted. Obviously, the sooner the Straits of Hormuz open, the better for everyone in the world, including us,” he said.

ANZ analysis of Australia’s fuel market published on Wednesday highlighted the nation’s supply vulnerability, declaring it the “most exposed” for jet fuel and diesel amid upset global markets.

Australia refines less than 20 per cent of its fuels with only two refinery’s operational, Viva Energy in Victoria and Ampol in Queensland.

The crisis has fueled a debate over Labor’s renewable energy strategy, with Nationals leader Matt Canavan using a National Press Club address to argue that the government’s green vision had jeopardised a resource-rich nation during future global oil crunches.

The outspoken Queensland Senator called to “restore sovereign capability and unleash energy abundance” and argue against Labor’s “absurd net zero agenda” and “ridiculous bans on fracking, nuclear and coal power”.

Senator Canavan said the nation was in the “terrible situation where we have to beg for liquid fuels” from other nations.

“Australia has the second-highest energy resources per person in the world – we should not have an energy crisis,” he said.

His pro-domestic drilling approach was echoed by Queensland Premier David Crisafulli, who travelled to oil field Taroom Trough to urge the Albanese government fast-track a major oil exploration project in the area five-hours east of Brisbane to “deliver liquid gold”.

Environment Minister Murray Watt, however, responded to say that any new projects needed to stack up “economically and environmetnally”.

“I don’t really know what Senator Canavan is getting at when it comes to us locking up resources. It’s not the government that have stopped people from building new coal-fired power stations,” he said.

“It’s the market that has decided that it’s not viable to do so because renewables have become much cheaper and much more widespread in their use.”

It came as Mr Bowen faced a heated exchange with a 7NEWS journalist who accused him of a “renewables obsession” during his Sydney press conference.

Reporter Liam Bartlett claimed the minister had “continuously rejected our approach” for a sit-down interview about the nation’s fuel security after sending 13 emails.

“Why can’t you sit down and answer open, honest questions?” he said, labelling him “hypocritical”.

Mr Bowen fired back, telling him to show a “little bit more respect for your colleagues” who were also waiting to ask questions.

“I’ve held a press conference every day. This is the first press conference you’ve been to ask me a question,” Mr Bowen said.

“Renewable energy is a secure form of energy. The Australian sun cannot be interrupted by a war or anything else. Solar energy has to travel 150 million kilometres from the sun. It doesn’t have to travel the 150 kilometres of the Straits of Hormuz,” he said.

“While we’re building that secure renewable energy, obviously, we continue to ensure that our most immediate task is energy security.”

Mr Bowen and Senator Watt also defend Labor’s decision to drop references to its 82 per cent renewables target in a preliminary draft of the party’s national policy platform it will take to the next election slated for 2028.

“In terms of our policy platform, that’s an ongoing process,” Mr Watt said.

“I don’t think anyone is under any doubt about our government’s commitment to move the electricity system towards more renewable energy, and that’s not because of an ideological issue. It’s because it’s the cheapest way we can deliver the power that Australians need.”

In his daily update on the nation’s fuel supplies, Mr Bowen said the total number of service stations without diesel had dropped to 221 out of 7940 in Australia — which equates to about three per cent.

He said while the number of stations without fuel is decreasing, Australia was “continuing to deal with very high demand for diesel” with the issue acute in NSW.

“The supply chain in regional New South Wales, in particular, has been stretched as its sowing and seeding season,” Mr Bowen said.

“We have, with the industry, been prioritising getting diesel to farmers so they can get their crops into the ground.

“But nevertheless, good progress, more work to do to ensure that that fuel continues to flow to where it’s needed.”

NRMA spokesman Peter Khoury said while the Federal government’s decision to halve the fuel excise last week, motorists shouldn’t hold our breath that prices will drop immediately.

“We need to accept the fact that a lot of these service stations are still going to be selling fuel that they bought at record high prices,” he said.

“It will take time for them to sell that. It will take time for the cuts in the wholesale prices to be passed on at the bowser.

“If the ceasefire holds and it becomes permanent, there are some realities that we have to deal with.

“Supply chains have been deeply affected. It’s going to take time for supply chains to get back to normal.”

New South Wales: In NSW, there are 124 stations with no diesel, which is down one from yesterday, and 27 stations with no fuel at all.

Victoria: Victoria has 40 service stations with no diesel and 28 with no unleaded petrol, representing around two per cent of the state’s stations.

Queensland: Queensland reports 30 stations with no diesel and 25 stations with no regular unleaded petrol.

Western Australia: WA has eight stations with no diesel, a decrease of 12 from yesterday’s update, and 21 stations with no unleaded.

Tasmania: Tasmania currently has seven stations without diesel and five without unleaded petrol.

South Australia: SA has four stations with no diesel and two without unleaded, with both of those figures trending down.

Northern Territory: The NT has four stations without diesel and four without unleaded petrol.

Australian Capital Territory: The ACT has four stations with no diesel and zero stations with no unleaded.