Australia's parliament has passed legislation authorizing its export credit agency to purchase, stockpile, and sell fuel, as well as critical minerals including rare earths, in physical form. Energy shortages triggered by the Middle East conflict are exerting pressure on Australia.
The government, led by Prime Minister Anthony Albanese, had announced plans in January to establish a critical minerals reserve. However, as the conflict involving the U.S. and Israel against Iran disrupts global energy markets, the Labor government added provisions to the draft legislation allowing for the acquisition and storage of fuel. The bill was passed by parliament on Tuesday.
This move comes as petrol and diesel prices at service stations across Australia have surged to record highs. Panic buying has driven up demand—particularly in rural areas—leading to fuel shortages at some stations and prompting the government to introduce measures such as halving the fuel excise tax and reducing charges for heavy vehicles.
The new law enables Export Finance Australia to increase the country's existing fuel reserves. The agency, which primarily supports Australian businesses operating overseas through loans, bonds, and equity investments, will see its mandate expanded as it transforms into the government's "trade arm." Its responsibilities will now include purchasing diesel, petrol, and rare earth elements to strengthen supply chains. The Australian government has allocated AUD 1.2 billion (USD 831 million) to fund the reserves.
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