Australia unveils $14.8 billion fuel security and resilience package

The Australian federal government has launched a $14.8 billion Fuel Security and Resilience Package to protect the nation from global supply disruptions. As part of the initiative, the government is seeking feedback through two consultation papers regarding the establishment of the Australian Fuel Security Reserve (AFSR) and the growth of the domestic Low Carbon Liquid Fuels (LCLF) industry.

The centerpiece of the plan involves a $3.2 billion investment to create a government-owned strategic reserve of one billion litres of diesel and jet fuel by 2030. The proposal also includes increasing mandatory industry fuel stockholding requirements by an additional 10 days and exploring ways to support the continued operation of Australia’s two remaining domestic refineries.

Industry groups, including the Australian Airports Association and the Australian Logistics Council, have welcomed the consultations. Aviation stakeholders specifically highlighted the opportunity to build a domestic sustainable aviation fuel (SAF) industry. Additionally, the government is considering potential biofuel mandates for airlines to bolster both fuel security and decarbonization efforts.