Australia introduces interest-free loans amid fuel crisis

Australian Prime Minister Anthony Albanese has announced that his government will support local companies facing rising fuel prices.

He said the government will provide interest-free loans totalling AUD 1 billion (approximately $693 million) to transport companies, energy firms, and fertiliser manufacturers, Caliber.Az reports, citing Reuters.

The PM emphasised that the measures are aimed at mitigating the effects of the global crisis caused by the war in Iran.

“No government can promise to eliminate the pressures this crisis will impose. But we can be a buffer against the worst of it. A shock absorber, in a time of global shocks,” he noted.

He cautioned that the economic consequences of the conflict will be felt for many months, affecting both businesses and the general public.

Interest-free loans will also be available to companies that play a key role in maintaining supply chains.

Australia, which imports around 80% of its fuel, has already taken several measures, including releasing 762 million litres of gasoline and diesel from national reserves, halving the fuel excise, and temporarily relaxing fuel quality standards.

By Bakhtiyar Abbasov