Albanese in dash to Singapore to secure fuel as Trump deadline looms

Prime Minister Anthony Albanese will dash to Singapore to lock in fuel imports from the oil superpower as Australia backs diplomatic moves from Turkey and Egypt, which, along with Pakistan, are seeking to mediate an end to the war in Iran.

As oil prices jumped again on Tuesday following the threat by US President Donald Trump to take out the “entire country” of Iran unless it reopened the Strait of Hormuz by 10am on Wednesday (AEST), Labor government ministers were in a full-court press to boost Australia’s chances of preserving liquid fuel supply should the flow of tankers dry in coming months.

Labor’s political opponents had for weeks accused Albanese of being slow to react to the oil shock caused by Iran’s effective blockage of the Strait of Hormuz.

In the past fortnight, the government has adopted a more aggressive stance and upended its planning for the May budget by announcing $2 billion in emergency funding to buy fuel at inflated prices, halving the fuel excise and planning meetings and calls with a slew of suppliers, including Singapore, Indonesia, South Korea, Malaysia, Brunei and Japan.

On Friday, Albanese will meet with Singaporean Prime Minister Lawrence Wong hoping to put Australia near the front of the queue should companies need to make hard choices on where tankers are directed.

Energy Minister Chris Bowen said on Tuesday the government was now projecting steady demand until mid-May, an improvement on earlier estimates and an indication that emergency measures were paying off.

Australia’s oil supply was “currently in a secure position”, Albanese said, and that he was talking to Asian leaders to boost the chances “of keeping our fuel supply flowing”.

Wong, who last month signed an in-principle agreement with Albanese on maintaining fuel supply, is in demand in Asia and Europe as world leaders scramble to make deals with Singapore.

The wealthy city-state is Asia’s major oil hub and in the top three refining hubs globally. Australia imports more than half its petrol from Singapore, as well as 22 per cent of its jet fuel and 15 per cent of diesel.

Albanese had a trip to visit Wong planned for later this year but has brought this forward. Prime ministers rarely make impromptu trips, underlining the importance of the fuel crisis to domestic politics as petrol prices spike and economists forecast a downturn.

Crucially, Singapore is reliant on Australia’s plentiful supply of liquefied natural gas (LNG) for nearly one-third of its imports. Gas prices have spiked since a massive LNG plant in Qatar was hit in an Iranian airstrike last month, which put Australian product in even greater demand. Qatar is Singapore’s biggest LNG supplier.

“We’ll continue discussions on securing our trade in petrol, diesel and LNG,” Albanese said.

Deputy Prime Minister Richard Marles will travel to Japan this week to talk about defence but is also expected to make Australia’s case to shore up oil imports.

Foreign Minister Penny Wong, meanwhile, will on Tuesday night speak with counterparts from Egypt and Turkey. The two countries, along with Pakistan, have been relaying messages between the US and Iran. Pakistan has positioned itself as the lead mediator.

Penny Wong is expected to emphasise Australia’s support for de-escalation, as repeated by Albanese on Tuesday, in an attempt to create momentum for a ceasefire that appears unlikely following days of escalating threats from Trump and talk of a peace deal that failed to materialise.

The foreign ministers from Pakistan, Egypt and Turkey met with Saudi Arabia’s top diplomat last week in Islamabad to discuss a US-Iran ceasefire. Analysts have argued that the four nations may provide a long-term framework for stability in the Middle East after the war.

Penny Wong has also been working the phones to secure a supply of fertilisers as Australian farmers warn of a critical shortage.

After weeks of more direct language from Labor ministers about the lack of a US endgame in Iran, Opposition Leader Angus Taylor on Tuesday emphasised the importance of the alliance with Washington. Trump has repeatedly criticised Australia for not playing a greater role in the conflict, and Australian ministers have tiptoed around questions on potential US requests for assistance.

“The American alliance is important to us. And that is something that we as the Coalition understand and will continue to support,” Taylor said, blaming Labor’s anti-pollution policies for Australia’s lack of refining capacity.

Albanese said service stations were faring well after the Easter weekend, after he used a nationally televised address last Wednesday to ask Australians to use no more fuel than they needed.

“Fewer stations have shortages today than before Easter, and I’d like to thank every Australian that has played a part in this outcome. However, of course some shortages do remain, particularly with diesel, and we continue to monitor this very closely,” Albanese said.

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