The Albanese Labor Government has announced today that the Federal Budget next week will include an Australian Fuel Security and Resilience package to ensure energy sovereignty and protect our nation’s energy interests.
The package will provide more than $10 billion to secure Australia’s near-term fuel and fertiliser security, establish a permanent Government-owned Australian Fuel Security Reserve of around a billion litres, and 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.
As part of our plan to deliver energy sovereignty, our Australian Fuel Security and Resilience package will deliver:
- $7.5 billion for the establishment of a Fuel and Fertiliser Security Facility to increase supply and storage of fuel and fertiliser by providing financial support including loans, equity, guarantees, insurance and price support.
- $3.2 billion to establish a Government-owned Australian Fuel Security Reserve of around a billion litres to increase long term diesel and aviation fuel supply and storage in combination with an increase to the Minimum Stockholding Obligation (MSO), to increase Australia’s critical fuel reserves to 50 days. Our Australia Fuel Security Reserve will focus on regional stockouts and supply constraints for essential users in the event of another supply crisis.
- $10 million to support feasibility studies into new or expanded fuel refining capabilities, to be co-funded with state and territory jurisdictions.
The Government will consult on implementation of the fuel reserve to enable the ability to underwrite or purchase fuel, support storage, and trade stocks as needed to ensure our fuel security during severe or prolonged fuel supply disruption.
An additional 10 days of fuel holdings through an uplift to the Minimum Stockholding Obligation for all fuels is also supported in the budget with $34.7 million over four years to support ongoing management of Australia’s fuel security, including Government engagement with industry to plan the uplift in fuel holdings.
It will be achieved by increasing current requirements on refiners and importers holding stocks of aviation fuel, petrol and diesel.
The changes will take place progressively over time, backed by support to invest in new and refurbished fuel storage to support the uplift in fuel stocks.
The Government will work with state governments to undertake feasibility studies into new or expanded refining capabilities, building on work with current refinery operators to retain our 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.