Australia Seeks New Fuel Supplies Amid Crisis

SINGAPORE, April 9, 2026

Prime Minister Anthony Albanese is in Singapore to discuss locking in fuel supplies with his counterpart, Prime Minister Lawrence Wong, as Australia faces a fuel crisis with diesel prices spiking to record highs. The trip comes as the effective closure of the Strait of Hormuz has significantly disrupted crude oil supplies to Singapore, a major oil refining hub and one of Australia's most important sources of refined petroleum products. According to Albanese, the meeting will "continue discussions on securing trade in essential supplies, including petroleum oils, such as diesel and liquefied natural gas".

The Significance of Singapore in Australia's Fuel Supply

Singapore is Australia's largest source of petrol, and the country's oil refineries are owned by companies that decide who to sell their product to. Flavio Macau, an associate professor of supply chain management at Edith Cowan University, said Mr Albanese's trip was "very necessary". "When you don't have the stock, you need friends," he said. Macau named the importance of relationships at this specific moment because Australia needs to secure its fuel supply, and Singapore is a critical partner in this effort.

The Global Search for New Fuel Supplies

Kevin Morrison, energy finance analyst at the Institute for Energy Economics and Financial Analysis, said Mr Albanese was not the only one making urgent overseas trips. "South Korea is sending a special envoy to Kazakhstan, Oman and Saudi Arabia to secure oil supplies," he said. Morrison mentioned South Korea's actions at this moment to highlight the intense competition for fuel supplies among countries in the Asia-Pacific region, and to signal that Australia is not alone in its search for new supplies.

The Role of Energy Diplomacy in Securing Fuel Supplies

The Japanese prime minister, Sanae Takaichi, is visiting Australia at the end of this month, when they will discuss energy among other issues. "The Japanese prime minister, Sanae Takaichi, is visiting Australia at the end of this month, when they will discuss energy among other issues," he said. Morrison mentioned the upcoming visit at this specific moment to emphasize the importance of energy diplomacy in securing fuel supplies, and to highlight the role of international cooperation in addressing the fuel crisis.

The Economic Cost of the Fuel Crisis

Diesel prices have risen as much as 20 cents a litre in two days to record highs of nearly 330 cents a litre around Australia. The service station diesel price has been forced up to more than 322 cents a litre in Sydney on average, 326 in Brisbane, and 328 in Melbourne. The energy minister, Chris Bowen, said contracted shipments of fuel into Australia were secure until at least the middle of May, but oil importers fear the closure of the Strait of Hormuz could mean oil prices jump again, with the government underwriting policy allowing Australian firms to bid for more expensive shipments. The human consequence of this price increase is that it will put downward pressure on the economy, affecting businesses and consumers alike.