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Australia purchases more jet fuel and urea from Brunei, China

The 'Australian Government' said that it had secured three shipments of jet-fuel from China, and additional urea for agricultural use from Brunei. This is to boost fuel and fertiliser stocks amid the disruptions caused by Iran War.

After discussions between Premier Li Qiang and Prime Minister Anthony Albanese, the government announced that more than 600,000. barrels of jet fuel, or approximately 100 million litres would be arriving in early June.

Beijing has been limiting fuel exports to protect the domestic supply since March after the Strait of Hormuz was closed, disrupting crude and fuel flow.

The government of Australia said that it also purchased 38,500 metric tonnes of urea in Brunei, to "support farmers and agriculture sectors".

The fuel and fertiliser security centre, worth A$7.5 billion ($5.36billion), was able to secure both shipments.

The facility was created to assist Australia's agricultural and transport industries deal with supply pressures through financial assistance in the form of loans, equity, guarantee, insurance, and price support.

Albanese, in a press release, said that the additional?600,000.00 barrels of jet-fuel will keep Australia moving and will provide?certainty? to our farmers.

The additional 'jet fuel' represents about 1% of Australia’s annual consumption.

Foreign Minister Penny Wong stated that Australia worked?with other countries in the region to respond to the shock to the global economic system and ensure the continual flow of essential fuels.

Since the Middle East conflict started at the end February, Australia has been experiencing localised fuel shortages. Reporting by Christine Chen, Sydney; Editing Clarence Fernandez, Jamie Freed

(source: Reuters)