MELBOURNE, Australia — Australia has agreed to underwrite two companies buying fuel at inflated prices, with Prime Minister Anthony Albanese warning Thursday that supply disruptions would "have a long tail" even if the Iran ceasefire holds.
The government had agreed to terms with Australia's largest suppliers Ampol and Viva Energy to underwrite contracts for gasoline and diesel bought on the spot market for prices above normal commercial rates, Albanese said.
The government would also have the power to direct how that fuel was distributed, with a focus on regional and farming areas where gas stations have run dry in recent weeks, Albanese said.
“This will have a long tail, which is why after this we will travel to Singapore,” Albanese told reporters at an Ampol refinery in Australian city of Brisbane.
"I'm looking forward to a constructive meeting with Prime Minister Lawrence Wong tomorrow," Albanese said.
“We don’t preempt one-on-one meetings at leaders’ levels, but the fact that we’re being welcomed at relatively short notice to Singapore speaks about the strength of the relationship,” he added.
Albanese’s visit would continue Singapore’s regional engagements to keep fuel supply flowing by strengthening fuel access for Australia, a Singaporean government statement said.
Australia was Singapore’s second-largest supplier of liquefied natural gas and Singapore was Australia’s largest supplier of refined petroleum products.
“This visit follows Australia and Singapore’s joint commitment to keep fuel flowing between both countries and to work together to strengthen energy supply chain resilience,” Singapore said.
Albanese said his government was moving quickly to increase Australia’s fuel supply.
He described the announcement this week of a two-week ceasefire in the Middle East war as an important step forward.
“If the ceasefire holds, that doesn’t mean that the world global capacity comes online in a week or a month. It will take as considerable period of time. This will have a long tail. That is very, very clear,” Albanese said.