More than $10 billion to boost fuel supplies and emergency stockpiles

Anthony Albanese has unveiled plans for a national fuel security package. (ABC News: Adam Kennedy) Next week's budget will include a $10 billion funding package aimed at increasing Australia's fuel stockpiles. The government will also fund feasibility studies to determine if new or expanded fuel refineries are possible. Prime Minister Anthony Albanese is urging Australians to continue conserving fuel where possible, as the Strait of Hormuz remains effectively closed. Link copiedShareShare articleMore than $10 billion will be spent bolstering Australia's fuel security as the federal government attempts to shield the nation from the long-term consequences of the war in Iran. Countries have been scrambling to secure adequate fuel, gas and fertiliser since the effective closure of the Strait of Hormuz, raising questions about whether Australia has adequate emergency stocks in times of crisis. Prime Minister Anthony Albanese has confirmed next week's budget will include an Australian Fuel Security and Resilience package, which includes: Currently, refiners and importers are required to store between 20 to 32 days of emergency supplies, depending on the type of fuel they hold. Under the proposal, which will require government and private-sector funding, Australia's mandatory petrol stockpiles will increase to about 37 days, while diesel and jet fuel will be about 50 days. Mr Albanese said the details of how the package will be funded will be announced in Tuesday's budget. "This is aimed at making sure that Australians can have more confidence in protecting our energy sovereignty, not just during this crisis, but going forward," he said. The government's new funding package includes $7.5 billion in financial support for fuel companies to access loans, insurance and equity so they can buy and store more fuel. Fuel companies have already used a portion of that funding to acquire extra stock through the government's new strategic powers, which allow Export Finance Australia (EFA) to underwrite fuel purchases. Ampol, BP Australia and Viva Energy have used the scheme to secure about 450 million litres of extra diesel and 100 million litres of additional jet fuel. The Viva Energy refinery in Geelong caught fire in April, casting further doubt over Australia's fuel security. (Supplied: Ben Young) The government will also spend $3.7 billion to set up a government-owned fuel security reserve that would hold 1 billion litres of diesel and aviation fuel for use in times of crisis. These stockpiles would be scattered across the country, and Energy Minister Chris Bowen said there would be a focus on regional areas. "Australia is actually in a minority of countries in the International Energy Agency who don't have a government-owned fuel reserve," he said. "This is a big change in our approach as a country and a good one." Federal and state governments will spend $10 million to determine whether Australia needs new or expanded fuel refinery capabilities. Mr Albanese said the overall package would significantly boost supplies and increase the emergency stockpile. "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," he said. Opposition Leader Angus Taylor said it was a no-brainer to boost supplies and stockholding obligations. "We need more fuel stocks … the government needs to get on with it," he said. The Coalition had already proposed to go further than the government's plan by increasing Australia's fuel stocks to 60 days. Mr Taylor said the government's plan did not go far enough, but said he would look at the details and determine which elements the Coalition would support. "The minimum stockholding obligation should get to 60 days," he said. "I have laid out a pathway to do that. The government needs to get on with it. They are not going that far, and that is disappointing." Copy linkFacebookX (formerly Twitter)Top StoriesArrests planned when ISIS-linked families land in AustraliaTopic:Federal Government

More than $10 billion to boost fuel supplies and emergency stockpiles

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