The Albanese government has announced a more than $10 billion fuel security package aimed at strengthening Australia’s energy resilience, including the creation of a 1 billion litre government-owned fuel reserve and a guarantee of 50 days’ supply of petrol, diesel and jet fuel.
Prime Minister Anthony Albanese said fuel and fertiliser security will be a key focus of the upcoming budget, amid ongoing global instability, including uncertainty in the Middle East and developments involving the Strait of Hormuz.
“We live in very volatile times, and there is uncertainty about events in the Middle East” and the impact on Australia, Albanese said.
“But what Australians can be certain of is that we are throwing everything at this to make a difference, to protect the interests of Australians.”
Under the package, $7.5 billion will be directed to establishing a fuel and fertiliser security facility to expand supply and storage, with government support to the private sector delivered through loans, equity, guarantees, insurance and price assistance.
A further $3.2 billion will fund a government-owned Australian fuel security reserve designed to hold 1 billion litres of diesel and aviation fuel, prioritising regional supply.
The minimum stockholding obligation will also be increased to around 50 days for all fuel types, supported by an additional $34.7 million over four years for ongoing fuel security management.
An extra $10 million will be allocated to feasibility studies into expanding or developing fuel refining capacity, co-funded with state and territory governments.
Energy Minister Chris Bowen said the plan represents a significant shift in national policy.
“This is a big change in our approach as a country, and a good one,” Mr Bowen said.
“We know that the international environment is getting more unstable, not less, and so we have to look at what we have done in this crisis and see what we can do to build Australia to be better prepared even for the next international crisis, whenever it might occur,” he said.
Source: Daily Telegraph.
