Albanese Taps Emergency Powers for Extra Fuel Supply

The federal government has moved to shore up Australia’s fuel supplies by striking emergency financing arrangements with the country’s two largest refiners, as concerns mount over the nation’s acute exposure to overseas energy shocks.

Prime Minister Anthony Albanese announced on April 8 that Export Finance Australia has finalised terms with Viva Energy and Ampol to help bring additional fuel into the country.

The move follows the passage of new fuel security laws last week, which handed Export Finance Australia unprecedented powers to underwrite fuel purchases on international spot markets.

Albanese said the new arrangement would deliver supply above normal commercial volumes and allow Canberra to influence distribution during a crisis.

“This is not business as usual,” the prime minister told reporters. “This is additional supply here in Australia that they will be able to source, and as part of that agreement, the government can direct where that supply goes.”

A Vulnerable Supply Chain

The intervention highlights a long-standing vulnerability: Australia currently imports about 90 percent of its liquid fuel needs. This reliance leaves it heavily exposed to global price spikes and shipping disruptions.

The announcement came just a day after Albanese held talks with Chinese Premier Li Qiang, with both leaders agreeing to maintain closer contact on regional energy stability.

According to a read-out from the prime minister’s office reported by the ABC, Australia and China agreed they were “both working in support of regional energy security.”

The diplomatic push has also extended to Singapore, where Albanese is expected to meet Prime Minister, Lawrence Wong.

The talks aim to secure further fuel shipments as tensions linked to the Iran conflict continue to rattle energy markets.

Coalition Pushes Fossil Fuel Response

The federal Opposition has welcomed the focus on security but argues the government’s response lacks long-term domestic ambition.

Shadow Energy Minister Dan Tehan urged Labor to revisit domestic fossil fuel development, specifically advocating for coal-to-liquid technology to produce diesel and petrol locally.

Tehan called for immediate amendments to environmental laws that he claims are stalling critical fossil fuel projects.

“We should look at coal-to-liquid fuel. We should look at drilling for oil,” he told Sky News.

“You’ll remember they [Labor] got into bed with the Greens and basically said they won’t fast-track any fossil fuel development in this nation. We think that should be changed immediately.”

Tehan also accused the government of weakening fuel preparedness by axing a $250 million diesel storage program introduced by the former Coalition government in 2020.