Australian Energy Minister Chris Bowen has met Indian Renewable Energy Minister Pralhad Joshi – and will soon meet Saudi Arabian Prince Abdulaziz bin Salman Al Saud – to discuss fuel supply and security challenges.
“[The Government is] not being complacent about [fuel supply challenges], we know the international situation remains difficult, and … that’s why [Chris Bowen] is pursuing those discussions as we speak,” Environment Minister Murray Watt told reporters on 26 September.
“India and Saudi Arabia are major suppliers of fuel to the world, and it is important that we build those connections, maintain those connections to ensure that our fuel supplies stay strong,” Watt said.
Bowen has discussed fuel security, energy transition, and climate cooperation issues with Indian ministers in recent days, he announced on 27 September. His meetings come months after the Australian and Indian Governments – on 9 July – agreed to maintain the flow of coal and liquid fuels between their countries.
Indian refiners accounted for 10% of Australia’s refined oil imports in 2024, while Australian producers accounted for 35% of India’s coal imports over the same period, data from the Observatory of Economic Complexity (OEC) show.
Bowen will soon travel to Saudi Arabia to meet Prince Abdulaziz bin Salman Al Saud and discuss the recent closure of the Kingdom’s East-West oil pipeline, which links the Abqaiq oil field, in the Persian Gulf, to the Red Sea.
Saudi Arabian officials closed the East-West pipeline because of drone attacks on 10 September. But they partially reopened it on 22 September, according to reporting from Reuters.
Saudi Arabia’s East-West pipeline closure pushed up Brent crude futures prices. Brent crude futures traded at $104.61/barrel on 11 September, up from $101.21/barrel on 9 September. Brent crude futures prices last traded at $104.32/barrel on 25 September, data from Trading Economics show.
Australian refined fuel prices have increased in recent weeks because of global maritime disruptions and Brent crude price hikes. Retail petrol and diesel prices in Australia’s five largest cities averaged A$2.37/litre and A$2.86/litre, respectively, on 23 September, up from A$2.24/litre and A$2.68/litre on 16 September, data from the Australian Competition & Consumer Commission (ACCC) show.
But the Australian Government does not expect to cut its fuel excise rate to support motorists, Watt and Defence Minister Richard Marles said on 26 September and 27 September, respectively.
By Avinash Govind