Australia signs key deal with Brunei amid fuel crisis, recession fears

Australia has signed a deal with Asian neighbour Brunei that will get more fertiliser to farmers at a time where they continue to be smashed by the fuel crisis.

Prime Minister Anthony Albanese, making his second stop in a tour of Asia, announced Australia had signed a Joint Statement on Energy and Food Security, which will help increase the supply of fertiliser from Brunei into Australia.

The prime minister said Australia gets about 11 per cent of its fertiliser and 9 per cent of its diesel from the tiny south-east Asian nation, and he claimed it was a beneficial deal for all Australians.

READ MORE: Meghan makes surprise appearance on reality show during Australian tour

"Not only did we speak about the supplies that were coming, we spoke about additional supplies as well," Albanese said, having had a meeting with Brunei's Sultan and Prime Minister Hassanal Bolkiah.

"We strengthen our fuel security and we strengthen our economy."

Albanese cut a positive figure, but Australia is still being hit hard by crosswinds caused by the Middle East conflict, with the fuel crisis continuing and fears growing of a recession.

The International Monetary Fund warned overspending and inflation partly caused by rising oil prices could cause a recession in Australia.

FUEL CRISIS: Virgin to cut flights, raise costs after $40 million fuel hit

Treasurer Jim Chalmers admitted it was a difficult economic climate, but insisted it was caused mostly by matters outside of Australia's control.

"Our economy is under very substantial pressure because of events on the other side of the world Australians didn't choose, but they're paying a hefty price for that," he said.

The federal government has moved to ease the fuel crisis, including two independent local suppliers, IOR and Park Fuels, which allows the government to underwrite some additional costs, meaning it will be cheaper for them to buy fuel.

READ MORE: Fuel thief on the run after stealing nearly $3000 worth of diesel

Both suppliers are key players in regional Australia, where farmers are feeling the pinch.

"To just get one two-litre bottle of milk to the shelf, it's costing me $1.90 just in freight, it's madness," a dairy farmer told Today.

Energy Minister Chris Bowen said the government was doing all it could to alleviate impacts.

"We'll continue to work and leave nothing on the field to make sure Australians and Australia are in the best place to get that fuel," he said.

NEVER MISS A STORY: Get your breaking news and exclusive stories first by following us across all platforms.

• Download the 9NEWS App here via Apple and Google Play

• Make 9News your preferred source on Google by ticking this box here

• Sign up to our breaking newsletter here