Australia To Boost Fuel Stockpiles
Australia will spend A$10 billion to strengthen its fuel security by increasing national stockpiles and creating a permanent government-owned fuel reserve amid concerns over global supply shocks.
Australia Fuel Stockpiles To Rise
Prime Minister Anthony Albanese said Australia will raise its onshore fuel cover to at least 50 days. The plan includes a permanent government-owned reserve of about one billion litres to improve the country’s ability to respond to shortages.
Australia currently imports nearly 80% of its fuel and has faced localised shortages during the Middle East crisis. Existing rules require private companies to maintain around 30 days of fuel supply.
Government-Owned Fuel Reserve Planned
The package includes A$3.2 billion for the new fuel security reserve, with focus on diesel and aviation fuel supply and storage. The government said the reserve would help essential users during regional stockouts or future supply disruptions.
The minimum stockholding requirement for importers and refiners will also be increased by around 10 days. This is aimed at giving Australia a larger buffer during international energy market instability.
Fuel Security Package Worth A$10 Billion
The broader A$10 billion package will also support fuel and fertiliser supplies through loans, equity, guarantees, insurance and price support. Energy Minister Chris Bowen said Australia was one of the few International Energy Agency members without a government-owned fuel reserve.
The move has been welcomed by motoring groups, though some energy analysts have questioned how the reserve will be managed and deployed in practice.
