Anthony Albanese to meet one of world’s richest people in bid to shore up Aus food and fuel supplies

Prime Minister Anthony Albanese will turn to one of the world’s wealthiest people and longest serving monarchs as his government works to shore up critical supplies of fuel and fertiliser during the deepening oil crisis.

Mr Albanese will on Tuesday travel to the Kingdom of Brunei for a private audience with Sultan Haji Hassanal Bolkiah, before meeting his Malaysian counterpart in a visit first revealed by the West Australian earlier this month.

During his stopover to the oil rich monarchy of Brunei Darussalam, the Prime Minister is scheduled to have an audience with the Sultan who has ruled the Islamic Kingdom since 1967 and is believed to have a personal fortune of up to $50 billion.

Brunei Darussalam supplies 9 per cent of Australia’s diesel imports, and 11 per cent of its fertiliser-grade urea imports, while this country is a key supplier of food and agricultural products to the tiny nation on the island of Borneo.

Later in the week Mr Albanese will meet his Malaysian counterpart Anwar Ibrahim in Kuala Lumpa, to discuss the supply of fuel and other critical goods as south-east Asian nations seek assurances from Australia over its gas exports.

Malaysia is Australia’s third-largest source of refined fuel and supplies 10 per cent of fertiliser-grade urea imports, while Australia provides 95 per cent of Malaysia’s imported natural gas.

With the Middle East conflict dragging on Malaysia has become one of the few “friendly” countries to secure toll-free passage for several crude cargoes through the Strait of Hormuz from Iran.

Last week during a meeting in Singapore with his counterpart Lawrence Wong, Mr Albanese secured a promise of continued fuel in exchange for Australia keeping up its gas exports, with both leaders also pledging to make the commitment legally binding.

The Prime Minister has declared Australia remains a “reliable supplier” of gas to countries in the region and expected “reciprocal arrangements” to keep fuel moving south while the Middle East conflict continues.

“Engaging with critical regional partners such as Brunei Darussalam and Malaysia will help ensure Australia’s energy supply remains secure during times of uncertainty,” Mr Albanese said in a statement announcing this week’s return visit to south-east Asia.

“We are taking every step to reinforce relationships and engage with key partners to keep our fuel supply flowing. My government is continuing to take every practical action to shield Australians from the impact of the war in the Middle East.”

Foreign Minister Penny Wong, who will join Mr Albanese for this week’s visits to Brunei Darussalam and Malaysia, warned “global supply challenges will be with us for some time”.

“Working with our regional partners matters more than ever because energy security in our region is a shared challenge. We’re continuing to engage closely with countries in our region to support the flow of essential goods like petrol, diesel and fertiliser,” she said.

Producers and independent supermarkets have been warning for weeks that the fertiliser supply challenges mixed with the rising cost of fuel could see some product prices increase by more than 20 per cent by Anzac Day, if Australia can’t secure more supplies.

Agriculture Minister Julie Collins has downplayed the inflationary concern on Sunday, but could rule out further price shocks due to the “unpredictable” nature of the conflict.

“We know there will be a flow through in the economy and … we’re doing everything we can to shield Australians as much as we possibly can,” Ms Collins

“Certainly, that’s (20% increases) not the figures that Treasury is modelling at the moment.

“But you know this war is unpredictable. We don’t know how long it’s going to go for … and what I would say is, is that we’re doing, as a government, everything we can to shield people.

“You’ve seen us already cut the fuel excise as you said, we’ve got tax cuts coming in from one July this year.

“As a government, we’re doing everything we can do to shield Australians as much as we possibly can.”

WAFarmers’ Livestock Section President Geoff Pearson said sourcing additional supply channels was a “great move” by the Government, but warned that the clock was ticking with the season set to begin.

“Timing is critical. If we rely on a single source it’s definitely in Australia’s favour to source other markets,” he said, adding that farmers were keen to move swiftly after a period heavy rainfall.

“We need to make sure we’ve got enough fertiliser to keep food on the table.”

Farmers are already having to absorb higher diesel costs.

Agriculture Minister Julie Collins said on Sunday that Canberra was talking with countries nearby to try to make up the loss.

Grocery prices could rise between 3 per cent and 4 per cent, based on Treasury estimates cited by Ms Collins, as high fuel and fertiliser input costs make their way through the economy.

“There’s enough fertiliser in Australia today and on its way on the water in terms of the initial planting season,” Ms Collins told Sky’s Sunday Agenda.

“But this is about longer term supplies because of the unpredictability and we don’t know how long this is going to go.”

She said the government was “talking to a range of countries in relation to fertiliser”, but singled out discussions with Indonesia and Malaysia.

“There’s been some discussions with Indonesia. There’s been some discussions with Malaysia. But more broadly, across Southeast Asia,” Ms Collins said.

Until Perdaman’s urea fertiliser plant near Karratha starts producing mid-next year, Australia is entirely reliant on imports. The mammoth industrial development was set to cost nearly $6.5 billion at last count.

Fertiliser supplies took an ill-timed blow in March when a unplanned power outage hit Yara Australia’s plant in the Pilbara. The operation would be out of action for at least two months, the company said at the time.

International Rescue Committee (IRC) last week warned fuel and fertiliser shortages would compound global food security crises caused by existing wars and create new crises without urgent action.

“The war in Iran has unleashed a triple emergency: a surge in humanitarian need, a global economic shock, and a system already stretched to breaking point by more than 60 simultaneous conflicts,” the aid group’s president and chief executive David Miliband said.

“The IRC is warning today of a ticking food security timebomb: if the Ukraine shock drove hunger to record highs within weeks, what is now unfolding threatens to be exponentially worse.

“The window to avert a massive global hunger crisis is rapidly closing.”

Ms Collins has repeated the government line acknowledging the “tail to this war” but said “we are more food-secure than a lot of other nations”.

“Australia does produce more food than we consume. But obviously there are critical points along that supply chain,” Ms Collins said, adding that the government was “doing everything we can in terms of supporting our farmers”.