Australia turns to Singapore as fuel supply crunch ripples from Middle East tensions

Anthony Albanese has held talks with Singaporean leaders as Australia moves to shore up fuel supplies amid global disruptions triggered by the conflict in the Middle East and tightening flows through key shipping routes.

The Australian prime minister met Singapore Prime Minister Lawrence Wong on April 10, with energy security and fuel resilience dominating the agenda as both countries face pressure from volatility in global oil markets, Caliber.Az reports via foreign media.

Singapore, a major refining and trading hub, is Australia’s largest supplier of petrol and a key source of diesel and jet fuel. In return, Australia supplies around a third of Singapore’s liquefied natural gas imports, underscoring the deep interdependence between the two economies.

“This is an important relationship at a time when fuel security is on the agenda right around the globe due to the conflict in the Middle East,” Albanese said after arriving in Singapore.

The discussions come as Australia faces tightening domestic diesel supplies, driven by limited stockpiles and logistical constraints across its vast territory. Panic buying has also led to temporary shortages at petrol stations in parts of the country, according to officials and industry sources.

Australia, which relies on imports for the majority of its refined fuel needs, has increasingly turned to regional partners to buffer against global shocks. Data cited by industry groups show Singapore accounts for more than half of Australia’s petrol imports, followed by South Korea and India.

The urgency has been amplified by instability in global shipping lanes, particularly the Strait of Hormuz, a critical chokepoint for global oil flows. Recent disruptions there have rippled through Asian refining markets and constrained supply availability.

Australia’s reliance on imported fuel has deepened over the past two decades as domestic refining capacity has declined sharply, leaving just two operating refineries compared with eight in the mid-2000s.

Singapore, meanwhile, has seen output adjustments at its refineries as crude supply chains tighten, though it remains one of Asia’s most important processing and distribution centres.

Australian Foreign Minister Penny Wong has also been engaged in parallel talks with regional counterparts, including Japan, South Korea, Indonesia and others, as Canberra seeks to diversify supply risks.

By Aghakazim Guliyev