Australia and New Zealand oppose energy protectionism
- Sydney (16 April)
Australian Treasurer Jim Chalmers and New Zealand Finance Minister Nicola Willis have joined nine other Finance Ministers to oppose energy trade barriers and call for the reopening of the Strait of Hormuz.
“We commit to avoiding, and call on all countries to avoid, protectionist actions, including unjustified export controls, stockpiling and other trade barriers in hydrocarbon and other supply chains,” the Ministers said late on 15 April.
Ministers from the 11 countries – including Japan – will promote cooperation and integration to support stability, they added.
Australia and New Zealand sourced 4.2% and 4.5% of their refined petroleum imports from Japan in 2024, according to the Observatory of Economic Complexity (OEC). Japan also buys about 40% of its imported natural gas and 60% of its imported coal from Australia.
Japan will continue to export refined petroleum products - including diesel and petrol - to Australia, despite the partial, ongoing closure of the Strait of Hormuz, according to the Australian Government.
“[Japan’s Government] has given us an assurance that normal supply will continue. I’ve done a similar thing with the South Koreans; they’ve given us assurances. And Singapore as well,” Australia’s Assistant Foreign Minister Matt Thistlethwaite told Sky News on 5 April.
The leaders of Brunei, Singapore, and Malaysia have since publicly pledged to cooperate with Australian Prime Minister Anthony Albanese on energy and critical goods supply issues. The three countries collectively account for about 40% of Australia’s refined petroleum imports.
Malaysian state-owned refiner Petronas plans to prioritise fuel exports to Australia, after domestic needs are met, Malaysian Prime Minister Anwar Ibrahim said at a press conference on 16 April.
Australia and New Zealand are confident about fuel supplies in April and into May, the governments have said over the last week.
New Zealand had 56 days of petrol reserves, 45 days of diesel reserves, and 47 days of jet fuel reserves on 12 April, according to the Ministry for Business, Innovation, and Employment.
Australia had 38 days of gasoline reserves, 28 days of jet fuel reserves, and 31 days of diesel reserves on 7 April, data from the Department of Climate Change, Energy, the Environment, and Water show.
The Australian Government bolstered its reserves on 16 April by underwriting 100 million litres of fuel purchases from Brunei and Singapore, in partnership with Australian producer Viva Energy.
By Avinash Govind