Australia plans to invest 10 billion Australian dollars (equivalent to 7.22 billion US dollars) to increase fuel stocks and establish a permanent national reserve.
This is reported by Finway
Establishment of a Strategic Fuel Reserve
As emphasized by Australian Prime Minister Anthony Albanese, the new reserve of about one billion liters will allow the country to secure fuel for at least 50 days. This decision aims to protect Australia from potential supply disruptions that may arise due to external crises.
“Next week, a package of measures to ensure Australia’s fuel security and resilience will be included in the federal budget,” Albanese stated.
Currently, Australia imports approximately 80% of its required fuel, and due to the escalating situation in the Middle East, the country has already experienced a local shortage. The current stocks, calculated for 30 days of autonomous operation, are primarily formed by private companies.
Support for the Fuel Industry and New Financial Mechanisms
According to the Prime Minister, out of the total amount, 3.2 billion Australian dollars will be allocated for the establishment of a national reserve aimed at the long-term storage of diesel and aviation fuel. An additional 7.5 billion Australian dollars will be directed towards supporting the supply and storage of fuel and fertilizers through loans, guarantees, insurance mechanisms, and price support.
Energy Minister Chris Bowen emphasized that Australia has remained one of the few member countries of the International Energy Agency that did not yet have its own national fuel reserve. Now the situation will change – the country will have a strategic reserve of about one billion liters, complementing the minimal stocks of the private sector.
It is worth noting that despite the cessation of direct fuel purchases from Russia following its invasion of Ukraine, Australia has imported over three million tons of Russian-origin petroleum products since 2023 due to loopholes in the sanctions.
Additionally, in March, the International Energy Agency decided to release 400 million barrels of crude oil from the strategic reserves of member countries to stabilize prices amid the conflict in the Middle East and the effective closure of the Strait of Hormuz.