Australia has agreed to underwrite two companies buying fuel at inflated prices as Prime Minister Anthony Albanese warned Thursday that supply disruptions would “have a long tail” even if the Iran ceasefire holds. The move hands the government more control over fuel distribution while ordinary people in regional and farming areas deal with gas stations running dry in recent weeks. **Who Gets Backed, Who Gets Managed** The government said it had agreed to terms with Australia’s largest suppliers, Ampol and Viva Energy, to underwrite contracts for gasoline and diesel bought on the spot market for prices above normal commercial rates. In plain terms, the state is stepping in to cushion the fuel companies while the costs and consequences of disruption keep rolling downhill. The government will also have the power to direct how that fuel is distributed, with a focus on regional and farming areas where gas stations have run dry in recent weeks, Albanese said. Speaking at an Ampol refinery in Brisbane, Albanese said, “This will have a long tail, which is why after this we will travel to Singapore.” He added, “I’m looking forward to a constructive meeting with Prime Minister Lawrence Wong tomorrow,” and said, “We don’t preempt one-on-one meetings at leaders’ levels, but the fact that we’re being welcomed at relatively short notice to Singapore speaks about the strength of the relationship.” **What the Top Says About the Bottom** Albanese said his government was moving quickly to increase Australia’s fuel supply and described the announcement this week of a two-week ceasefire in the Middle East war as an important step forward. He said, “If the ceasefire holds, that doesn’t mean that the world global capacity comes online in a week or a month. It will take as considerable period of time. This will have a long tail. That is very, very clear.” The language is all about resilience, supply chains, and managed access, but the facts on the ground are simpler: fuel is scarce enough that the government is preparing to direct where it goes. The people most exposed are the ones in regional and farming areas, where stations have already run dry. The people least exposed are the ones with the authority to underwrite contracts and steer distribution. **Singapore, Supply Chains, and the Machinery of Access** A Singaporean government statement said Albanese’s visit would continue Singapore’s regional engagements to keep fuel supply flowing by strengthening fuel access for Australia. It said Australia was Singapore’s second-largest supplier of liquefied natural gas and Singapore was Australia’s largest supplier of refined petroleum products. Singapore said, “This visit follows Australia and Singapore’s joint commitment to keep fuel flowing between both countries and to work together to strengthen energy supply chain resilience.” That is the language of the apparatus: keep fuel flowing, strengthen resilience, maintain access. The arrangement is framed as cooperation, but it is cooperation between governments and major suppliers while the public is left to absorb the disruption. The government’s power to direct distribution makes clear who gets to decide which areas are prioritized when scarcity bites. The article was by Rod McGuirk, who covers Australian and South Pacific news for The Associated Press and is based in Melbourne.
