Coalition would boost Australia fuel reserve to 60 days

A Coalition government would boost Australia’s minimum fuel reserve  to 60 days, and deliver at least  one billion litres of new storage with a $800 million Fuel Security Facility.

The opposition, making the announcement on Monday, said the new storage capacity would have “a focus on diesel”.

Diesel, especially vital in regional areas and for the trucking industry and farmers, has been under particular pressure during the present fuel crisis.

The opposition meanwhile called on the government to  increase baseline  stockholding fuel levels  from January 1 next year.

Australia’s fuel reserves are currently about 44 days of petrol, 33 days of diesel and 30 days of jet fuel. The  international obligation is for a 90 day reserve – a level not held in recent years under either side of politics.

The government has said the  cost of moving to the 90 day reserve would be about $20 billion over four years.

Leader of the Opposition Angus Taylor said: “If fuel stops, Australia stops. We are putting forward a practical plan to make sure that never happens. More fuel in reserve, more storage on the ground, and a country that can stand on its own two feet.”

“This is about protecting Australians’ way of life and restoring their standard of living.”

Nationals leader Matt Canavan said families and businesses needed to know fuel would be there when required.

“People in the regions know how serious this is. If the diesel doesn’t turn up, the farm doesn’t run and the shelves go empty,”  Canavan said.

“This plan is just common sense. Keep more fuel here in Australia so we are not relying on overseas supply lines that can be cut overnight.”

The Coalition estimates that increasing the reserve to 60 days could be expected to raise the price at the bowser by about one cent a litre.

“In the context of the very steep increases in prices consumers have experienced in recent months due to the threat to our fuel security, the Coalition considers this prudent insurance to prevent severe economic damage during a potential future crisis,” the opposition said in a statement..

This week, Foreign Minister Penny Wong is travelling to  Japan, China, and South Korea with fuel and energy security high on the agenda in her talks.

“The Middle East conflict and closure of the Strait of Hormuz continue to disrupt global energy markets, with Asian refineries and the Indo-Pacific region disproportionately affected,” Wong said.

“Direct, in-person engagement with counterparts across our region will help ensure we are coordinating effectively as these disruptions continue to unfold.”

In Tokyo, Wong meets the Minister for Foreign Affairs, H.E. Motegi Toshimitsu, other cabinet ministers, and industry leaders.

In Beijing, she will hold the eighth Australia-China Foreign and Strategic Dialogue with Foreign Minister Wang Yi.

Korea is one of Australia’s most important sources of refined fuels, including diesel, automotive gasoline and aviation fuel.

Prime minister Anthony Albanese has already made two trips to Asia recently in a round of fuel diplomacy.