Interview with Stephanie Ferrier, ABC News Breakfast

Transcript, E&OE Subjects: Fuel supply; cost-of-living; Victorian state politics; US tariffs 28 July 2026 Stephanie Ferrier, Host: Well, let's get more now on that warning about the economic impact of fuel prices, which comes alongside new US tariffs on Australian imports. And the Minister for Foreign Affairs, Penny Wong, joins us now. Thank you very much for coming on News Breakfast, Minister.

Penny Wong, Foreign Minister: Good to be with you, Steph. Well, first of all, we've heard those Treasury warnings that fuel prices are just going to continue to rise if this conflict continues. Donald Trump is talking about the fact that he's ready for strong military action if this latest round of diplomacy fails.

This all comes at the time that we are seeing a potential end to those fuel excise discounts at end of the week. Will you be looking at extending that in light of what Treasury has warned? Foreign Minister: First in relation to the conflict itself?

You're right, this is incredibly disruptive for global markets, and it has been felt by Australians at the bowser and in the prices that people are paying. One of the reasons that the government has been so focused on assuring more fuel and fertiliser coming to Australia, which is, yesterday we had a good meeting in Adelaide with the Singaporean Foreign Minister, Trade Minister and Defence Minister where we agreed to secure trade in fuel and food.

Obviously, we are always conscious of cost-of-living pressures, which is why you've seen the government focusing on that in the budget and beyond. As the Prime Minister said, it's not in our current plans to continue the excise. We said it would step down.

What we are focused on is assuring continued fuel and fertiliser coming into Australia. And we are calling, as so many in the international community are, for there to be cease fire and negotiations and an end to this conflict which has caused so much global turmoil. So, you're ruling out any further relief for motorists?

We are going to have those inflation figures, of course, tomorrow coming out. Is there any room to move on the discount? Foreign Minister: I think you've seen the government over this last period focus very clearly on cost-of-living, whether it's on rises in the minimum wage, on increasing bulk billing, on childcare fees, on energy support.

These are all matters that the government will always continue to look at: How do we best address cost of living and inflation measures? Currently, the plan is for the fuel excise to step down. As you know, it's come down, it's halved and the intention is for that to discontinue as of this weekend.

You're also looking at potentially opening another oil refinery, a homegrown refinery. I take your point that you were talking about Singapore treatment, but how important is it to make sure that we have local investment and local refineries to ensure and strengthen our oil security? Foreign Minister: That's a really good question.

And the reality is we have to do both. We have to assure our supplies from global partners. And you remember that the government really very quickly stepped in to do that when energy markets started to feel the impacts of the closure of the strait earlier this year.

And we're continuing to do that. But you're right, we need to also look at what we can do here in Australia to shore up our resilience. And four out of six refineries in Australia closed under the previous government.

And I know the Prime Minister will be making announcements today about our intention to try and support a return to refinery capacity in Australia. Turning to domestic politics, we've just heard news that it is very likely that the Victorian Premier, Jacinta Allan, will lose this leadership spill. This is after her deputy looked her in the eye and said that he was going to stand by her.

Do you feel sorry for Jacinta Allan? Foreign Minister: Oh, look, first, I'd say politics is a very tough game and you see a lot of, you know, good people who have to do very difficult things at times and it goes through difficult times, but that's the nature of politics. I would say that this is a matter for the Victorian Labor Party and I'll really leave it to them to resolve and obviously, whatever the outcome, we will be working with them in the lead-up to the state election.

It might be a matter for local politics, Minister, but there is no doubt that this is due to the fact that we are seeing the increase in voter disaffection and people starting to move towards those other parties like One Nation. Is this something that Federal Labor needs to look at in terms of some lessons learned from the Victorian example? Foreign Minister: A couple of points about that.

First, we're really clear that delivering real change is the best way to shore up, you know, support for our democracy and that politicians, governments have to respond to the experiences that people have, whether it's at the fuel bowser or in the supermarkets or when they're looking for a house. And what you've seen is the Albanese Labor government really focusing on how do we deliver real change on those key cost-of-living measures.

We want Australians to be able to earn a decent wage, to be able to have a chance to get into their own home, to be able to go and see a bulk-billing doctor, be able to go to a properly funded school and be able to retire with dignity. And I think all of the government's focus has been on ensuring decent outcomes for Australians. We're just running out of time, Minister.

But just before we go, I do need to ask you very briefly on the tariff situation that US has imposed, the 12.5% tariff, basically on the basis of concerns about slave labour. We saw the Four Corners report about the possibility that some of the Chinese tomatoes might be getting into our area where there is forced labour in those Chinese areas. What do you say about that?

What are you trying to do to make sure that our trade interests are fully representative when we talk with the US? Foreign Minister: We want to say very clearly, we believe that the latest round of tariffs from the Trump administration, from the American administration, are not justified. Australia has world leading laws when it comes to modern slavery.

We don't believe these are justified. Just as we continue to advocate for open trade consistent with the US-Australia Free Trade Agreement. In relation to the allegations which have been aired publicly, I'd say Australians expect suppliers, retailers to deliver on what they say.

And if they say something is made in Australia or made in Italy, then that's what the consumer should be assured of receiving. Ok, Minister, thank you very much for your time. Foreign Minister: