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Singapore, New Zealand ink supply chain resilience pact
Singapore, New Zealand ink supply chain resilience pact
Sydney, 5 May (Argus) — Singapore and New Zealand have signed an Agreement on Trade in Essential Supplies (AOTES), committing both countries not to impose export restrictions on covered goods for the other during a crisis, in a move described by the governments as a world first. The agreement, signed on 4 May, is intended to strengthen fuel security for New Zealand and food security for Singapore. It will be incorporated into the existing New Zealand–Singapore Free Trade Agreement, subject to domestic approval processes in both countries. Around one-third of New Zealand's refined fuel supply is sourced from Singapore, giving the pact particular relevance for fuel markets. While largely procedural, AOTES may provide additional confidence to market participants by translating political assurances into a legally binding framework. "With a third of New Zealand's fuel refined in Singapore, this agreement turns trust into action, helping keep fuel flowing to New Zealand when it matters most," New Zealand prime minister Christopher Luxon said. The agreement follows a mid-April move by Australia and Singapore to fast track a legally binding framework aimed at safeguarding the flow of energy and other essential supplies between the two countries. That arrangement reaffirmed mutual commitments to energy security but stopped short of guaranteeing supply or priority access during severe shortages, highlighting the limits of bilateral assurances in globally traded markets and the much larger trade volumes between the countries compared with that of Singapore and New Zealand. By Tom Woodlock Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Australia extends EV tax cuts to 2029 on higher sales
Australia extends EV tax cuts to 2029 on higher sales
Sydney, 5 May (Argus) — Australia's federal government will continue its fringe benefits tax (FBT) exemption for electric vehicles for another 12 months before winding back the discount in stages to 2029, on the back of a surge in demand. The full discount for battery EVs costing less than A$91,000 ($65,000) will continue until 31 March 2027, energy minister Chris Bowen said on 5 May, before the FBT is changed to cover only EVs costing less than A$75,000 from 1 April next year, while more expensive EVs will get a 25pc discount on FBT payable. All EVs below the luxury car tax threshold will receive a 25pc discount on FBT from 1 April 2029. The new policy comes after a government review of EV discounts, which found that 330,000 EVs were sold over the rebate's initial three years to December 2025, with about 133,000 bought under leases benefitting from the FBT exemption. Plug-in hybrids, EVs also featuring a combustion engine but with an externally chargeable battery, were included in the exemption until 1 April 2025. Around 64,000 extra battery EVs and 78,000 extra EVs including plug-ins were sold due to the discount in the first three years, according to the review. The nation's Productivity Commission (PC) had advocated a phasing out of the FBT, a policy platform criticised by industry body the EV Council as stalling Australia's energy transition. The PC estimated that the electric car discount's (ECD) cost of CO2-equivalent (CO2e) emissions abatement was somewhere between A$987-20,084/t, unfavourable compared to other policies, but improved air quality, lower operational costs for motorists and reducing reliance on imported fuel were considered benefits, the review said. Battery boom Australia used 273,000 b/d of gasoline last year , mainly for passenger cars, while a proportion of the 578,000 b/d in average gasoil consumption went to light commercial and passenger vehicles. But EV uptake is rising. Soaring fuel costs and panic-buying which led to tighter availability of transport fuel in some areas may be boosting EV uptake. EVs accounted for 14.6pc and 16.4pc of all new sales in March-April, up from 7.5pc and 5.9pc a year earlier, according to Federal Chamber of Automotive Industries data. This spike may also be due to concerns about the FBT phase-out ahead of the 12 May 2026 budget and some impact from Canberra's fuel efficiency standard , which mandates carmakers to meet tightening emissions standards across their range. A commuter-centric nation, Australians mostly live in suburban areas characterised by distance from employment and poor public transport connections. Demand for EVs is still well-below combustion engines, renewables lobby Rewiring Australia said on 5 May, and more charging infrastructure and affordable supply are needed to make EVs the first choice. Transport-related emissions were 98.7mn t CO2e in the year ending 30 June 2025, or 22.5pc of Australia's total, up by 0.3pc on the year . By Tom Major Australia's gasoline sales by state (b/d) Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
German fuel demand drops ahead of tax cut
German fuel demand drops ahead of tax cut
Hamburg, 4 May (Argus) — Demand for diesel and gasoline in Germany fell sharply in the week ending 1 May as the temporary energy tax cut on fuels takes effect on 1 May, traded spot volumes reported to Argus show. The German government will reduce the energy tax on diesel, gasoline and similarly taxed products such as hydrotreated vegetable oil by €14.04/100 l for two months. Including VAT, this is equivalent to a tax relief of around 17¢/l for consumers at the pump. Consumers limited purchases to essential volumes in April on expectations of the tax change, while filling stations deliberately kept inventories low at the turn of the month. As a result, traded spot volumes for diesel and gasoline reported to Argus declined week-on-week over the course of April. The muted demand especially challenged suppliers with term contracts. The suppliers kept lowering April diesel prices to raise contracted volumes by the end of the month and avoid penalties. This led to unusually wide spreads between low and high price assessments in the week ending 1 May. Oversupply was strongest in Germany's southwest at the 310,000 b/d Miro, where April diesel prices for prompt loadings at times fully diverged from the developments in Ice gasoil futures. Diesel offers on 30 April for same-day collection at the regular tax rate were nearly on par with May-delivery product already priced with the reduced tax rate. Market participants expect diesel demand to rise sharply at the start of May, as consumers such as farmers and filling stations refill empty tanks. One major supplier urged customers to lift contract volumes below the contractual limits in the first week of May to prevent potential shortages. But traders doubt consumers will feel the full tax relief immediately. Persistent volatility in Ice gasoil futures, driven by developments in the Iran war, may offset the effect on prices. And the benefit will likely be smaller in regions where heavy supply pressure kept end-April prices already low. By Johannes Guhlke Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
South Australia proposes expanding fuel rationing rules
South Australia proposes expanding fuel rationing rules
Sydney, 4 May (Argus) — The South Australian government has proposed legislation to expand its authority to impose fuel rationing, as concerns persist over global oil supply disruptions linked to the Middle East war, it said on 3 May. Rationing measures would only be activated if Australia's National Fuel Security plan , currently at level 2, escalates to level 4, the most severe classification. The proposed amendments to the state's Petroleum Products Regulation Act would allow fuel rationing to be imposed for up to 90 days at a time, replacing the current seven-day limit. The 90-day period could be renewed repeatedly if required, the South Australian premier Peter Malinauskas announced on 3 May. The proposed framework would also introduce stricter penalties for market misconduct during supply shortages, including fines of up to A$1mn ($650,000) for fuel retailers, wholesalers and suppliers found to be engaging in price exploitation. State opposition leader Ashton Hurn called for the establishment of a strategic gasoil reserve, proposing a 20mn litre buffer stock to support essential sectors during supply disruptions. Western Australia (WA) created a separate strategic fuel reserve to the national minimal stockpile obligation in mid-April. The state government purchased 4mn litres (25,157bl) of gasoil to be stored in the Kimberley region, north of WA, while an additional 8mn litres (50,314 bl) of gasoil will be stored between Esperance and Kwinana. By Lawrence Wen Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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