Coalition unveils road map to turbocharge fuel capacity
Australia’s fuel reserves will more than double to 60 days under a coalition plan to strengthen the country’s supply chains in the face of the global crisis.
Opposition Leader Angus Taylor and National Party leader Matt Canavan will unveil proposals to improve fuel security on Tuesday.
The proposal includes the construction of an $800 million facility that will provide at least one billion liters of new diesel-focused onshore storage.
Mr Taylor said the plan could be accepted “without delay” by Prime Minister Anthony Albanese because Australia would cease operations if it ran out of fuel.
“More fuel in reserve, more storage on land and a country that can stand on its own feet,” he said.
“This is about protecting the way of life and restoring the living standards of Australians.
“You don’t do it with talk, you do it with action.”
The Liberals and Nationals are calling on the federal government to remove essential fuel stockpiles from January, with current levels mandated as the new minimum.
This would increase minimum levels for critical fuels as a whole by almost a quarter.
Within the scope of the minimum stock holding obligation, importers are required to have a basic level of domestic fuel stocks.
While gasoline and jet fuel require a 27-day supply, importers must have enough diesel to last 32 days.
According to the coalition analysis, removing the minimum stocking requirement to 60 days would increase the price of fuel in Bowser by approximately 1 cent per liter.
However, it is argued that this move is “prudent insurance” to prevent serious economic damage during a future crisis.
The proposal means fuel suppliers must create additional storage and purchase extra fuel, with financial support also offered to help manage the cost.
Senator Canavan said households and businesses that need the fuel of confidence will be there when they need it.
“This plan is just common sense. Keep more fuel in Australia so we won’t be dependent on overseas supply lines that could be cut overnight,” he said.
“We can’t keep hoping for the best. We need to be ready, and this plan gets us there.”
According to the International Energy Agency’s agreement, member countries, including Australia, are required to maintain a 90-day emergency oil stockpile.
As of mid-April, Australia had a 49-day fuel supply, according to the agency.
The Albanian government had previously announced that complying with the 90-day requirement would cost $20 billion.
Countries are allowed to hold stocks outside their own country and can count reserves held abroad as part of the requirement.
Conflicts in the Middle East are choking global fuel supplies, with key shipping routes closed.
Australia’s Associated Press is the beating heart of Australian news. AAP is Australia’s only independent national news channel and has been providing accurate, reliable and fast-paced news content to the media industry, government and corporate sector for 85 years. We inform Australia.
