Australia diversifies fuel supply imports over Iran war
- Sydney (23 April)
Australian importers have increased their purchases of US, Argentine, and Algerian fuel since the start of the US-Israeli war in Iran, Prime Minister Anthony Albanese said at a press conference on 23 April.
US refiners are supplying 18% of Australian fuel imports at the moment, Albanese said. They supplied just 0.4% of Australian refined petroleum imports in 2024, by value, data from the Observatory of Economic Complexity (OEC) show.
Argentina’s share of Australian fuel imports is also into double figures, Albanese said. Australia secured just 0.002% of its fuel imports from Argentina in 2024, OEC data show.
Australia remains at Level 2 of its National Fuel Strategy, indicating effective supply chains with localised disruptions. “At this stage, what we have is normal supply. The number of ships we’d have expected to be coming to Australia are coming,” Albanese said.
The country has 46 days of petrol reserves, which is 10 days more than when the war began, Energy Minister Chris Bowen said. It also had 31 days of diesel reserves on 18 April, Bowen said at the time.
The Australian Government is actively underwriting fuel purchases to expand the country’s reserves. It has supported 300 million litres of diesel purchases over the last week – equivalent to just over three days’ worth of supply – through government funder Export Finance Australia.
Albanese also secured cooperation pledged from the Singaporean, Malaysian, and Bruneian governments last week. Malaysian state-owned refiner Petronas plans to prioritise Australian fuel exports after domestic needs are met, Malaysian Prime Minister Anwar Ibrahim said at a press conference on 16 April.
Australia’s energy diplomacy and trade diversification efforts come alongside escalating tensions in the Strait of Hormuz. US and Iranian forces have boarded vessels around the maritime passage in recent days.
The US Navy has blockaded Iranian ports since 14 April, forcing over 30 vessels to return to Iranian waters since then, US Central Command (Centcom) said on 23 April. The Iranian-flagged Dorena oil tanker is under the escort of a US Navy destroyer in the Indian Ocean after attempting to avoid the blockade, Centcom said.
Brent crude oil futures traded at $103.41/barrel (A$146.07/barrel) on 23 April, up from $72.87/barrel on 27 February, right before the US and Israel attacked Iran. Diesel and unleaded 91 octane petrol prices in New South Wales averaged A$2.66/litre and A$1.94/litre, respectively, on 23 April, up from $1.83/litre and A$1.73/litre over February.
By Avinash Govind