Albanese Flies to Asia, Secures 1.1 Days of Extra Diesel Supply

The Announcement

Prime Minister Anthony Albanese announced on Thursday that the federal government had secured about 100 million litres of additional diesel for Australia, with two shipments coming from Brunei and South Korea.

The cargoes are the first purchased under the government’s new Strategic Reserve powers, which passed Parliament in late March. Albanese, who is touring South East Asia this week, made the announcement while in Malaysia.

“This agreement strengthens Australia’s fuel security by ensuring additional cargoes are delivered to the domestic market when and where they are needed most,” Albanese said.

Trade Minister Don Farrell said the new powers reached beyond fuel. “Our Strategic Reserve powers go further than fuel, they will secure the supply of strategic materials that are vital to our economy, including fertiliser and other goods impacted by the current conflict in the Middle East,” Farrell said.

About One Day of National Supply

Australia consumes around 92 million litres of diesel a day under normal conditions, according to federal petroleum statistics and industry analysis. At that rate, the 100 million litres announced on Thursday equals about 1.1 days of national use.

Energy Minister Chris Bowen said on Monday that Australia’s diesel reserves stood at 31 days. The two new shipments would lift that cover by about a day.

Where the Fuel Goes

Bowen said the new cargoes would stay in Australia rather than being re-exported. “These cargoes are additional to existing contracted supply, are required to remain in Australia and will be directed to the industries and regions which need them the most,” Bowen said.

The federal government secured more than 570,000 barrels of diesel through a partnership between Export Finance Australia and Viva Energy. Separate commercial agreements were struck with Ampol, Park Fuels and IOR. The fuel will be directed to farmers, regional communities and essential services.

What It Means for Logan

For Logan, the extra day of national cover is unlikely to move pump prices on its own. On Thursday, no service station in the City of Logan was selling diesel below $3 a litre, according to live Queensland Government fuel price data.