The Coalition has unveiled its $800m plan to boost Australia’s minimum fuel reserves by more than 50 per cent and provide 1 billion litres of new storage, amid global fallout from the ongoing Middle East conflict.
The Opposition has called on the Government to introduce a new minimum stock level that will increase critical fuel stockholding by almost 25 per cent, with a focus on diesel.
Opposition leader Angus Taylor said it was a plan that should be picked up by the Prime Minister without delay.
“If fuel stops, Australia stops. It’s that simple. Trucks don’t move, supermarkets don’t stock, businesses shut their doors,” he said.
“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. You don’t do that with talk. You do it with action.”
The Coalition’s plan involves more than doubling fuel reserves by increasing the Minimum Stockholding Obligation (MSO) to 60 days.
It will also establish an $800m Australian Fuel Security Facility to deliver at least 1 billion litres of new onshore storage – with a focus on diesel.
The Nationals Leader Matt Canavan said families and businesses needed confidence that fuel would be there when they needed it.
“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,” he 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.”
“We cannot keep hoping for the best. We need to be ready, and this plan gets us there.”
Under the existing MSO, fuel suppliers are required to hold a minimum stock of fuel with costs passed through to consumers in the final price of fuel.
Fuel suppliers would need to construct additional storage and purchase additional fuel – achieved with added financial support from the government.
It is understood the Coalition estimates that the doubling the existing MSO would raise the price of fuel at the bowser by around 1c per litre.
Shadow Minister for Energy and Emissions Reduction Dan Tehan said the Coalition’s plan delivered a clear pathway to stronger fuel security.
“This is a practical, achievable plan that strengthens our fuel supply chain and backs Australian industry,” Mr Tehan said.
“It works with industry, builds storage where it is needed, and makes sure we have the buffer to withstand global shocks.”
The party claims they could deliver 60 days of fuel security by 2030 if the proposal starts today.
