Albanese government commits $10.7B to fuel security

The Albanese government announced a landmark $10.7 billion Australian Fuel Security and Resilience package, a centrepiece of the upcoming federal budget designed to fortify the nation's energy sovereignty.

Amidst ongoing global supply chain volatility and regional instability, Prime Minister Anthony Albanese confirmed that the investment will establish a permanent, government-owned strategic fuel reserve of approximately one billion litres.

The $3.2 billion sovereign reserve is specifically targeted at mitigating diesel and aviation fuel shortages, ensuring essential services and regional industries remain operational during prolonged disruptions.

The package includes $7.5 billion for a new fuel and fertiliser security facility.

This entity will provide financial backing—including loans, equity, and price support—to scale up domestic storage and supply chains for these critical commodities.

The government will lift the Minimum Stockholding Obligation for private importers and refiners by roughly 10 days across all fuel types.

Supported by $34.7 million in management funding, this progressive uplift aims to secure at least 50 days of onshore fuel supply.

Complementing these measures, $10 million has been allocated to feasibility studies for expanding domestic refining capabilities.

The government intends to consult closely with industry stakeholders to implement the reserve, which will allow for the strategic purchase and trading of stocks.