Jim Chalmers heads to US for fuel security talks as Middle East war drives oil crisis, IMF warns of recession
Jim Chalmers says the government has all hands on deck as it seeks to secure Australia’s fuel supplies amid the global oil crisis arising from the war in the Middle East.
Jim Chalmers says the government has all hands on deck as it seeks to secure Australia’s fuel supplies amid the global oil crisis arising from the war in the Middle East.
The Treasurer flew to Washington DC on Wednesday morning for talks with counterparts from key countries that supply fuel to Australia, as well as the International Monetary Fund and World Bank.
The IMF issued a warning overnight about the looming risk of a global recession and urged the government to avoid cost-of-living relief measures that could fuel inflation in its Budget next month.
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By continuing you agree to our Terms and Privacy Policy.Dr Chalmers will meet ministers from Singapore, Japan, Korea, Indonesia and the UK, while Prime Minister Anthony Albanese and Foreign Minister Penny Wong are holding talks with leaders from Brunei and Malaysia.
“In our government, it is all hands on deck when it comes comes to securing more fuel, engaging with industry, engaging with our international partners to try and get through a difficult period for the global economy and the consequences for our own economy and for Australians in communities right around our country,” Dr Chalmers told reporters at Brisbane Airport before his departure.
“The IMF is sounding the alarm in some pretty severe scenarios that they have published overnight.
“This is a very serious, very dangerous time for the world. Australia is better placed and better prepared than a number of other countries but we won’t be spared the fallout from this very substantial economic shock.”
The Budget, which will be handed down on May 12, is still being shaped because of the enormous global uncertainty.
However, Mr Albanese and his Treasurer have indicated there will be some further cost-of-living support in the event of a prolonged war, beyond the three-month halving of fuel excise currently in place.
Dr Chalmers is also eyeing tax reform, productivity boosts, and savings.
“I’m really confident that we can strike the right balance in the budget between near-term pressures and intergenerational obligations,” he said.
“I’m confident that this budget, which will be focused on fuel security, supply chain resilience and economic reform, will balance those key considerations.”
