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Australia has forged a pivotal agreement with its Asian neighbor, Brunei, aimed at boosting the availability of fertiliser for its farmers. This move comes at a crucial juncture as the nation grapples with ongoing challenges posed by the fuel crisis.
During his second stop on a tour across Asia, Prime Minister Anthony Albanese revealed that Australia has entered into a Joint Statement on Energy and Food Security with Brunei. This strategic partnership is set to enhance the flow of fertiliser from Brunei into Australia, providing much-needed relief for the agricultural sector.
Highlighting the significance of the agreement, Prime Minister Albanese noted that approximately 11 percent of Australia’s fertiliser and 9 percent of its diesel imports originate from Brunei. He emphasized the mutual benefits of this deal, asserting that it serves the interests of all Australians.
“In our discussions, we addressed not only the current supply levels but also explored opportunities for additional supplies,” Albanese explained, after engaging in talks with Brunei’s Sultan and Prime Minister, Hassanal Bolkiah.
He concluded by stating, “This agreement fortifies our fuel security while simultaneously bolstering our economy.”
Albanese cut a positive figure, but Australia is still being hit hard by crosswinds caused by the Middle East conflict, with the fuel crisis continuing and fears growing of a recession.
The International Monetary Fund warned overspending and inflation partly caused by rising oil prices could cause a recession in Australia.
Treasurer Jim Chalmers admitted it was a difficult economic climate, but insisted it was caused mostly by matters outside of Australia’s control.
“Our economy is under very substantial pressure because of events on the other side of the world Australians didn’t choose, but they’re paying a hefty price for that,” he said.
The federal government has moved to ease the fuel crisis, including two independent local suppliers, IOR and Park Fuels, which allows the government to underwrite some additional costs, meaning it will be cheaper for them to buy fuel.
Both suppliers are key players in regional Australia, where farmers are feeling the pinch.
“To just get one two-litre bottle of milk to the shelf, it’s costing me $1.90 just in freight, it’s madness,” a dairy farmer told Today.
Energy Minister Chris Bowen said the government was doing all it could to alleviate impacts.
“We’ll continue to work and leave nothing on the field to make sure Australians and Australia are in the best place to get that fuel,” he said.
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