The federal government has signed new deals with fuel companies Ampol and Viva, which underwrite spot purchases of cargos normally deemed commercially risky.
Announced on Thursday morning at the Ampol refinery in Queensland, Prime Minister Anthony Albanese said the agreement follows the passing of fuel security powers through the parliament last week.
He said the terms of the contracts with Ampol and Viva means Export Finance Australia will underwrite the spot fuel cargo purchases at short notice and the government can direct where those supplies go.
“This allows them to bring more fuel to Australia,” Mr Albanese said, ahead of a visit to Singapore where more than half of Australia’s petrol supplies travel from.
Energy Minister Chris Bowen said the Ampol and Viva deals provide government backing in a volatile market.
“These purchases become riskier for companies like Ampol and Viva because the oil price might move substantially by the time the spot cargo gets from where the companies buy it to Australia,” Mr Bowen said.
The deals come as a ceasefire between the United States and Iran appears fragile, after Israel continue to bomb parts of Lebanon prompting Iran to declare the Strait of Hormuz closed until the bombing stops.
“It is a fragile peace, but we want it to lead to an agreement,” Mr Albanese said.
“The Australian government also firmly believes this should apply to Lebanon as well. We want to see peace in this region.”
In the past few hours, US vice-president J.D. Vance, who is due to begin negotiations with Iran in Pakistan at the weekend, has rejected claims the ceasefire agreement included Lebanon.
“I think this comes from a legitimate misunderstanding,” he told reporters.
“I think the Iranians thought it included Lebanon and it just didn’t. We never made that promise. We never indicated that.”
