What Australia’s new $10b fuel security plan means

WHAT HAS BEEN ANNOUNCED

* The federal government has included a $10 billion fuel security and resilience package in the upcoming budget

* This is in response to the fuel crisis caused by the conflict in the Middle East, which has effectively closed a key passageway where a fifth of the world’s oil transits through

WHAT’S INCLUDED

* A $7.5 billion fuel and fertiliser security facility to increase storage and supply

* A $3.2 billion government-owned Australian fuel security reserve of abound a billion litres

* Increasing the minimum stockholding obligation by about 10 days for every type of fuel such as petrol, diesel, and jet fuel through a $34.7 million commitment over four years

* An expansion of Australia’s onshore fuel reserves to ensure at least 50 days of fuel supply and storage

* Funding of $10 million to support feasibility studies into new or expanded fuel-refining capabilities beyond 2030, to be co-funded with the states and territories

WHAT’S BEEN SAID

* “While today’s announcement is a positive step in ensuring we are better placed for a future fuel crisis, businesses are hurting from the fuel price shock, from higher inflation, and higher interest rates” – Australian Chamber of Commerce and Industry chief executive Andrew McKellar

* “The global energy crisis has revealed Australia’s lack of these basic fuel security mechanisms, and the government should be commended for putting them in place now” – Australian Industry Group chief executive Innes Willox

* “The global events of the last two months have opened our nation’s eyes to the immediate need for Australia to take its fuel security seriously” – NRMA spokesman Peter Khoury

Tess Ikonomou
(Australian Associated Press)