Extra diesel shipments prioritised for regional areas
Andrew Brown |
An extra 100 million litres of diesel has been secured for Australia, with half of that to be prioritised for regional areas.
Two extra cargoes of diesel will enter the nation following a deal struck between Export Finance Australia with fuel companies Ampol and BP.
Of the 100 million litres, 50 million will go to regional centres in Queensland including Townsville, Gladstone and Mackay.
Trade Minister Don Farrell said the deals would allow for further supply to reach areas hardest hit by the fuel crisis.
“Through these early actions and the additional shipments that are expected to arrive in the coming weeks, we are securing supplies that are essential for our industries to keep moving in the face of the continued conflict in the Middle East,” he said.
“Approximately 400 million litres of additional fuel have now been secured as a direct result of the Albanese government’s new strategic reserve powers.”
The measures have allowed the government to underwrite the cost of fuel on the spot market to prevent further shortages.
According to the NRMA, Australia uses almost 94 million litres of diesel a day.
Energy Minister Chris Bowen said work was ongoing to get additional shipments of fuel to the nation.
“We are strengthening our fuel supply chain working with industry, and these additional cargoes from our third partner to secure shipments to date is proof of this work,” he said.
The extra fuel comes as Indonesia’s foreign minister assuaged fears it would impose a toll on the Strait of Malacca, where large amounts of fuel ships go through.
An Indonesia minister previously suggested the country would place a toll similar to that imposed by Iran on the Strait of Hormuz.
The Strait of Malacca accounts for almost half of the world’s trade by sea.
Resources Minister Madeleine King said the relationship with Indonesia remained crucial for Australia.
“What’s vitally important is that these trade routes do remain open, all of them,” she told ABC Radio.
“That’s what will always be Australia’s position as a nation that relies heavily on trade, as, of course, does Indonesia.”
AAP