Anthony Albanese\u2019s fuel diplomacy tour of Asia has already started paying dividends, but the real test could still be to come.<\/p>\n
After last week\u2019s rush to Singapore and pulling forward a planned visit, the prime minister dashed back to Australia from Malaysia on Thursday, to survey the damage at one of the nation\u2019s only remaining fuel refineries. The hastily arranged trips, were to show a leader on the job; to demonstrate Albanese\u2019s attention to the fuel crisis.<\/p>\n
While the number of petrol stations without petrol and diesel has been steadily declining<\/a> each day, and the government is confident that further fuel imports are now assured into at least June, there are no illusions that Australia is out of the woods yet. The fragile ceasefires in the Middle East, and Trump\u2019s blockade-of-a-blockade entirely plugging up the strait of Hormuz, have done little to assuage fears about ongoing supplies of oil, fuel and fertiliser.<\/p>\n Sign up for the Breaking News Australia email<\/a><\/p>\n It\u2019s why the fire at Geelong\u2019s Viva refinery couldn\u2019t have come at a worse time, even if damage was not as great as first feared. The energy minister, Chris Bowen conceded it was \u201creally bad timing\u201d, as Albanese forecast Viva\u2019s output would see a \u201cslight slowdown\u201d.<\/p>\n With little on-shore refining capacity of our own, even a small interruption to one of Australia\u2019s two facilities is not ideal.<\/p>\n All this means a couple of small shipments of extra fuel would come in pretty handy.<\/p>\n Like the 100m litres from South Korea and Brunei, announced just a day after Albanese\u2019s visit to the latter country.<\/p>\n Albanese and Bowen were accused by critics of being found flat-footed in the early days of the crisis, initially writing off concerns then downplaying impacts on the nation\u2019s fuel supplies. Some of the same critics ridiculed Albanese as having overcorrected with his televised address to the nation. But weeks of diplomatic engagements with partners worldwide, and more recent in-person visits to key allies in our region, have borne early fruits of fuel and fertiliser \u2013 with more to come, Albanese foreshadowed.<\/p>\n The fact the PM didn\u2019t come back with a shipload of diesel in his checked baggage didn\u2019t mean the trip wouldn\u2019t be seen in future as a pivotal moment<\/a>.<\/p>\n \u201cThis is the first of many expected shipments secured under the government\u2019s new strategic reserve powers with the support of Export Finance Australia,\u201d the prime minister said of the 570,000 barrels of diesel bought by Viva Energy<\/a>.<\/p>\n Stirring media pictures of Albanese in protective work gear, inspecting refineries in Singapore and fertiliser plants in Brunei, didn\u2019t hurt either, nor did headlines about the nation\u2019s leader rushing back from overseas engagements to tend to emergencies at home.<\/p>\n Of course, 100m litres of diesel is little more than a day\u2019s worth of normal Australian consumption. And the capacity of Viva to use and process that fuel could be constrained by the fire at their Geelong plant. So while every little bit helps, and the government will be happy to have an extra day of fuel in the tanks, Albanese will be hoping extra shipments keep getting won by Australian bidders.<\/p>\n The extent of Viva\u2019s slowdown is still to be confirmed, but Albanese said the plant\u2019s owners had said 80% of diesel, 80% of aviation fuel and 60% of petrol production would continue. The plant contributes only 10% of Australia\u2019s total fuel needs, but half of Victoria\u2019s, so the effects in totality may be relatively small. Viva CEO, Scott Wyatt, said the incident wouldn\u2019t have any effect on Victorian supply, that the plant may be able to boost its output to make up any shortfalls, and that the company wouldn\u2019t pass on any extra costs to consumers. That\u2019s a relief.<\/p>\n The government might be able to nickel-and-dime its way through the fuel crisis, extracting agreements from key partners that petrol products will keep coming on ships, and snapping up extra supplies where they can. While prices at the pump remain high, fuel reserves are not plummeting, and fewer petrol stations are without petrol. Albanese is still working overtime to project calm, downplaying the prospect of going to higher stages of the emergency fuel plan, and even the Coalition opposition is struggling to articulate a coherent point of criticism.<\/p>\n