Australian Prime Minister Anthony Albanese traveled to Singapore on Thursday to meet with Singaporean Prime Minister Lawrence Wong in an effort to secure priority fuel supplies from Singapore for Australia amid the escalating global energy crisis, thereby ensuring Australia’s critical fuel supply.
Australia is highly dependent on imported fuel, with approximately 90% of its liquid fuels coming from overseas, primarily from Asia. Among these sources, Singapore—a major global hub for refining and petroleum trade—is Australia’s largest supplier of gasoline, accounting for about half of the country’s monthly fuel shipments.
Meanwhile, regional supply chains are experiencing a ripple effect. Thailand has restricted fuel exports, while South Korea and China have also implemented export controls, placing Australia under even greater pressure. To address the shortage, Australia has begun importing fuel from more distant regions such as the Gulf of Mexico, Sudan, and the United Kingdom, resulting in significantly higher transportation costs and longer transit times, which will ultimately be reflected in consumer prices.
Currently, Australia’s fuel supply is expected to last until May, but industry experts warn that if the conflict persists, Asian refining output declines further, or more countries restrict exports, supply risks will rise sharply.
Commentary:
Albanese’s goal on this trip is to secure priority fuel supplies, but the reality may be more complex. Singapore’s refining sector is primarily dominated by private enterprises, leaving limited room for direct government intervention. Even if the two governments reach a consensus, the final supply arrangements will still depend on market mechanisms and commercial contracts. Therefore, so-called “priority supply” may not necessarily translate into concrete and binding commitments.
On the other hand, Singapore’s reliance on Australian liquefied natural gas (LNG) in its energy mix does provide Australia with some bargaining leverage, which in theory could help elevate its standing in supply allocation. However, given the current supply tightness and intensifying regional competition, there remain significant uncertainties as to whether this advantage can be translated into tangible benefits.