Australia Unveils $10 Billion Fuel Security Plan Ahead of Federal Budget
The Prime Minister of Australia has announced that next week’s Federal Budget will include a major Australian Fuel Security and Resilience package, aimed at strengthening the nation’s energy sovereignty and safeguarding critical fuel supplies.
The package will deliver more than $10 billion to enhance Australia’s fuel and fertiliser security, including the creation of a permanent, government-owned fuel reserve of around one billion litres.
A key feature of the plan is an increase in the Minimum Stockholding Obligation (MSO) by approximately 10 days across all fuel types. This will expand Australia’s onshore fuel reserves to ensure at least 50 days of supply, particularly for diesel and aviation fuel.
Key measures include:
- $7.5 billion to establish a Fuel and Fertiliser Security Facility, providing financial support such as loans, equity, guarantees, insurance, and price support to boost supply and storage capacity.
- $3.2 billion to create the Australian Fuel Security Reserve, targeting long-term supply resilience and addressing regional shortages, especially during crises.
- $10 million to fund feasibility studies into new or expanded fuel refining capabilities, in partnership with state and territory governments.
The initiative is designed to protect essential industries and communities from global supply disruptions, ensuring Australia remains prepared in the face of future energy challenges.
Source: Australian Government /Media Post
