Australia could get more fuel from the US, Mexico or its Asian neighbours, with a new government policy helping refineries bid for oil shipments as diesel prices spike to new record highs.<\/p>\n
Anthony Albanese is flying to Singapore on Thursday to lock in ongoing petrol supplies from our biggest source of refined fuels. On his way out of Australia, the prime minister confirmed that the government had used new powers to extend assistance<\/a> to Ampol and Viva refineries, with Canberra to underwrite their efforts to buy new shipments of oil on the open market.<\/p>\n The energy minister, Chris Bowen<\/a>, said contracted shipments of fuel into Australia were secure until at least the middle of May, with optimism that the Middle East ceasefire could lead to oil prices returning to normal. But oil importers fear the closure of the strait of Hormuz, and uncertainty over the ceasefire as Israel escalates its bombing of Lebanon, could mean oil prices jump again, with the government underwriting policy allowing Australian firms to bid for more expensive shipments.<\/p>\n Bowen said such shipments could become available at short notice anywhere in the world, and would help meet Australia\u2019s fuel needs. The government has been engaging with partners through Asia to shore up supplies but the minister said refiners could look farther afield.<\/p>\n \u201cObviously the closer it is to Australia the better, the quicker it is to get here, if it\u2019s through Singapore or Korea or Malaysia, for that matter, but there\u2019s also opportunities in North America and Mexico in particular,\u201d he said.<\/p>\n 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.<\/p>\n Sign up for the Breaking News Australia email<\/a><\/p>\n Wholesale price rises have outweighed the government\u2019s fuel tax relief, rising a further 5 cents a litre around the country on Thursday, according to the Australian Institute of Petroleum.<\/p>\n The service station diesel price has been forced up to more than 322 cents a litre in Sydney on average, 326 in Brisbane, 328 in Melbourne and 329.3 in Canberra, according to MotorMouth. All capitals are facing record high average prices for diesel.<\/p>\n Petrol prices rose in some cities on Wednesday but resumed falling overall in every capital on Thursday morning except for Adelaide, where unleaded prices edged up again to 223.9 cents a litre on average. But the wholesale price of unleaded has risen about 5 cents a litre around the country in the last two days, suggesting retail price rises are on the way.<\/p>\n Jim Chalmers said the fuel crisis highlighted the need for a stronger transition to more renewable energy sources.<\/p>\n \u201cI find it bizarre, frankly, that in the context of what we\u2019ve seen in the last month and a half, that anyone would conclude from that that we should continue to have all of our eggs in one basket,\u201d the treasurer said.<\/p>\n \u201cWe need cleaner and cheaper energy, more diverse sources and more reliable and robust supply chains \u2026 one of the conclusions of this war in the Middle East is that we need more, not less, when it comes to sovereign capacity, cleaner and cheaper energy, and more reliable, more resilient, more robust supply chains.\u201d<\/p>\n The US-Iran ceasefire had sent prices plummeting for crude oil, which is refined into diesel and petrol, but oil prices are still at highs and are edging back up as renewed bombing leaves markets doubting oil supply can resume.<\/p>\n Albanese again called for an end to the Middle East conflict, urging that Lebanon \u2013 targeted on Wednesday in Israel\u2019s largest attack since its war with Hezbollah began, killing at least 254 people and wounding 837<\/a> \u2013 must be included in the ceasefire<\/a>. Asked if Israel\u2019s escalating strikes on Lebanon were a threat to the ceasefire and the reopening of the strait of Hormuz, Albanese would only say: \u201cWe want to see a ceasefire.\u201d<\/p>\n But the prime minister warned that even if the strait opened again, Australia and global supply chains would continue feeling effects for some time, noting disruption to shipping transit and storage facilities in the Gulf.<\/p>\n \u201cIf the ceasefire holds, that doesn\u2019t mean that the world global capacity comes online in a week or a month,\u201d he said. \u201cIt will take a considerable period of time. This will have a long tail, that is very, very clear.<\/p>\n \u201cWhat we are doing and what we have done consistently here is not to wait \u2026 we\u2019ve looked at every possible opportunity there is to increase supply.\u201d<\/p>\n Albanese wouldn\u2019t say how much financial assistance the government would provide to Ampol and Viva, claiming it would hinder negotiations. But he said the terms of the agreements meant the government could direct where that extra supply goes, adding that any new shipments would be directed to \u201cregional Australia and areas that are under pressure in terms of supply\u201d.<\/p>\n