The Australian Government has announced it will spend $10 billion to boost the nation’s fuel stockpiles and establish a permanent Government-owned Australian Fuel Security Reserve of around 1 billion litres.
The expanded stockpiles and reserve of around 1 billion litres will ensure Australia holds at least 50 days of fuel onshore to shield the country from future supply shocks, Prime Minister Anthony Albanese said.
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According to Reuters, Australia imports about 80% of its fuel and has experienced shortages since the start of the conflict in the Middle East. Current reserves, mandated at around 30 days’ supply, rely on stocks maintained by private companies.
Albanese also said the government would lift the Minimum Stockholding Obligation by around 10 days for every type of fuel. This will support an overall expansion of Australia’s onshore fuel reserves to ensure at least 50 days of fuel supply and storage of diesel and aviation fuel.
The government said it will work with state governments to undertake feasibility studies into new or expanded refining capabilities, building on work with current refinery operators to retain the nation’s current refining capability in the decade beyond 2030.
More details of the Australian Fuel Security and Resilience package will be released next week as part of the Federal Budget.
Related article: What the Geelong refinery fire reveals about our fuel supplies
The nation’s fuel refining capabilities have been under scrutiny since the Middle East conflict began, and fire broke out at the Viva Energy refinery in Geelong—one of Australia’s two remaining domestic oil refineries.
