Australia unveils over $7.2B fuel security plan to boost reserves

Australia on Wednesday announced a fuel security package worth more than 10 billion Australian dollars (about $7.2 billion) amid global uncertainty

The plan, to be included in next week's federal budget, will fund the creation of a government-owned fuel reserve of around one billion liters and expand onshore storage to ensure at least 50 days of national fuel supply, according to an official statement issued from the Prime Minister Office.

Officials said the initiative is designed to protect critical sectors during disruptions.

A key component includes 7.5 billion dollars for a fuel and fertilizer security facility.

Another 3.2 billion dollars will establish the national reserve, focusing on diesel and aviation fuel.

The government also plans to increase minimum stockholding requirements by about 10 days for all fuel types, alongside investments in storage infrastructure and feasibility studies for refining capacity.

Prime Minister Anthony Albanese said the package is aimed at shielding Australians from global energy shocks and ensuring long-term supply stability.

"We're taking action to secure fuel now and into the future. By buying and storing more fuel, and finding ways to make more fuel here. This will protect Australians from future fuel shortages and help keep the country moving," Albanese wrote on US social media platform X.

Further details are expected to release next week as part of federal budget.

Last month, Australia released fuel reserves to stabilize supply as Canberra, heavily reliant on fuel imports, faces increased vulnerability to disruptions and rising demand linked to the ongoing Middle East conflict.