Foreign Minister Penny Wong says Australia will stand with the Pacific through the fuel crisis, warning the disruption to global energy supply is hitting the region hard and requires a coordinated response.
Speaking at the Pacific Islands Forum Secretariat Tuesday during a meeting with Secretary General Baron Waqa, Wong described the Forum as central to regional unity.
“This place, the Secretariat of the PIF, this is the heart of the Pacific – the heart of Pacific regionalism – it’s where I gave my very first speech to the Pacific as Foreign Minister and we understand that the Forum makes us stronger, it unites us and it is the key to realising the leaders’ vision for a peaceful, stable and prosperous region.”
She said the current crisis is a major concern across the region.
“The de facto closure of the Strait of Hormuz has caused unprecedented disruptions to global energy supply.”
Wong acknowledged the impact on Pacific communities.
“I know how distressing this has been in Australia and I know how distressing it is for the people of the Pacific, so we come with a key message to the Pacific family – Australia is a committed partner, Australia is a reliable partner, we have stood with you through challenging times and we will stand with you again today,” Wong emphasised.
She warned the region is highly exposed to fuel shocks.
“The Strait supplies around 80 percent of the oil to our region, through the refineries in Asia and Forum members rely on imported fuels for transport, for industry, for tourism, for agriculture and often also for electricity generation.”
“It is foundational to our economies and the health of Pacific communities.”
Wong said while supply remains stable, risks remain.
“Supply to the region has remained steady thus far but PIF countries are acutely exposed to rising fuel costs and potential future supply risks.”
She confirmed Australia’s backing for regional action.
“We support the invocation by the Forum Troika, of the Biketawa Declaration, and we will work closely with the governments of the region and the Secretariat to coordinate our regional response.”
Wong said Australia is pushing diplomatic efforts to ease the crisis.
“We are already actively working on a number of fronts, obviously we have pushed for de-escalation and an end to the war, we are involved in diplomatic efforts to reopen the Strait, and we are engaging with other countries that supply fuel to our region.”
She said Australia is also working with key partners and suppliers.
“The Prime Minister, Treasurer Chalmers, Cabinet Ministers, including me, have all directly advocated for stable, reliable and secure supply for the Pacific including with key trading partners.”
Wong pointed to cooperation with the Republic of Korea.
“We agreed to uphold the resilience of Pacific energy markets with the Pacific explicitly ‘front of mind’.”
She said engagement with private companies is also underway.
“We’re engaging with private companies that provide supply and we know we maximise our impact as governments when we shore up existing commercial supply chains.”
Australia is also providing direct support to Pacific countries.
“Australia is providing support and technical assistance to Pacific partners to develop and implement national response plans.”
Wong said broader coordination is underway with international partners.
“We’re working to draw in support from other longstanding partners including New Zealand, Japan, the U.S, France, as well as the ADB and the World Bank.”
She stressed the importance of a Pacific-led response.
“Coordinating these efforts to back in a Pacific-led response to these global shocks makes all of our economies stronger, more secure and more resilient now and into the future.”
Wong also called for unity across the region.
“We have to face this current moment with regional solidarity.
“Forum unity and the Pacific voice have never been more important,” she said.
