Australia commits $14.8 billion to fuel security and resilience package

The Australian Federal Government has pledged $14.8 billion through its Fuel Security and Resilience Package to bolster national fuel security and support a transition to homegrown, sovereign fuels. A key component of the plan is a $3.2 billion investment to establish the Australian Fuel Security Reserve, which aims to create a government-owned strategic reserve of one billion litres of diesel and jet fuel.

Climate Change and Energy Minister Chris Bowen announced that the government intends to increase mandatory industry fuel stockholding requirements for diesel, petrol, and jet fuel by an additional 10 days by 2030. The initiative seeks to mitigate risks from future geopolitical crises and reduce vulnerability to supply disruptions from overseas.

The government has released two consultation papers to gather feedback on three primary measures: the establishment of the Australian Fuel Security Reserve, increasing minimum stockholding obligations through co-investment in storage, and supporting the continued operation of Australia’s two remaining domestic refineries beyond 2030.