Australian Government commits $10 billion to strengthen national fuel reserves
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The Australian Government has unveiled a massive $10.7 billion fuel security package ahead of next week’s federal budget, aiming to strengthen the country’s fuel reserves after recent supply disruptions linked to conflict in the Middle East.
The plan includes $7.5 billion for a new Fuel and Fertiliser Security Facility, designed to boost local fuel storage and supply through loans, guarantees and industry support.
Another $3.2 billion will go towards creating an Australian Fuel Security Reserve. The reserve is expected to store around one billion litres of diesel and aviation fuel to improve long-term energy security.
The government also plans to increase minimum fuel stockholding requirements by about 10 days. Australia currently holds around 43 days of petrol supply and 33 days of diesel supply still well below the 90-day target required for members of the International Energy Agency.
Australia remains heavily dependent on imported fuel and now operates only two oil refineries, located in Brisbane and Geelong. Concerns intensified after disruptions in the Strait of Hormuz triggered fuel shortages and panic buying earlier this year.
The package also includes funding for new fuel storage projects, refinery feasibility studies, and ongoing industry coordination to prepare for future supply shocks.
Additional emergency measures already introduced by the government include temporary fuel excise cuts, relaxed fuel quality standards, support for fuel imports, and the removal of some heavy vehicle charges.
The opposition has criticised the government’s response, arguing Australia needs even larger fuel reserves and more domestic energy production to avoid future shortages.
Source : carexpert.com
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