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Australia Locks In Diesel as Hormuz Blockade Drags and Geelong Fire Cuts Output

Export guarantees are drawing fuel cargoes to Australia to steady prices.

Overview

  • Prime Minister Anthony Albanese returned from Southeast Asia with deals for an extra 100 million litres of diesel from Brunei and South Korea, backed by a federal guarantee that underwrites spot-market purchases.
  • The government reported about 50 tankers are now bound for Australia, reflecting a push to reroute supplies while the Strait of Hormuz remains largely closed and global fuel flows stay tight.
  • Viva Energy’s Geelong refinery suffered a fire that reduced petrol production to about 60 percent and diesel and jet fuel to about 80 percent, adding a domestic strain to already tight imports.
  • Malaysia’s leader said Petronas would prioritise Australia for any excess fuel after meeting home demand, and Brunei and Singapore issued assurances on energy and food security through joint statements.
  • Experts say panic buying, not a nationwide shortage, caused many stations to run dry, as households and farmers faced higher costs and limited urea supplies during a shock that removed roughly one-fifth of global fuel flows.