in brief
- A government-owned fuel reserve will be set up, as well as a fuel and fertiliser security facility.
- The Opposition said it's "too little, too late" as cost of living pressures sparked by the war in the Middle East bite.
The federal government has announced a $10 billion package in a bid to bolster Australia's fuel and fertiliser security.
Prime Minister Anthony Albanese on Wednesday announced the government would pour $3.2 billion into government-owned fuel reserve that would hold 1 billion litres of diesel and aviation fuel.
The minimum stock-holding obligation for suppliers will also be increased by about 10 days — meaning Australia would hold at least 50 days of every type of fuel.
Some $7.5 billion will be set aside for a fuel and fertiliser security facility aimed at boosting supply and storage, providing financial support through loans, equity, guarantees and price support.
Feasibility studies into newer, expanded fuel-refining capabilities will be given $10 million.
"This is aimed at making sure that Australians can have more confidence in protecting our energy sovereignty, not just during this crisis, but going forward as well, protecting our nation's energy interests," Albanese said, following a National Cabinet meeting.
Opposition leader Angus Taylor criticised the announcement, labelling it "too little, too late".
Taylor said the nation's fuel stocks needed a boost, but said the Coalition wanted the minimum stock-holding obligation at 60 days, which would take the totals up to 90 days.
"They're not going that far, and that's disappointing," he said.
Energy Minister Chris Bowen said Australia was in the minority of International Energy Agency member states without a government-owned fuel reserve.
"We will now have a government-owned fuel reserve ... to add to those minimum stocks that the private sector must hold, particularly focused on diesel and jet fuel," he said.
The fuel could be channelled to address regional shortages and supply constraints for essential users in the event of another supply crisis.
It comes as the war in the Middle East, which has choked the movement of about a fifth of the world's oil through the Strait of Hormuz, has put a spotlight on Australia's energy security and reliance on fuel imports.
It has sent fuel and fertiliser prices soaring. Consumers have been given some relief through the government's cutting of the fuel excise, but this measure is due to expire in June and the government has not confirmed an extension.
Australia now has greater stores than it did at the start of the war in Iran. The latest figures show that, if current consumption levels remained steady and no new supply entered Australia, the nation would have 43 days' worth of petrol, 33 days of diesel and 28 days of jet fuel.
Wednesday's announcement follows the establishment of the fuel task force in March to ensure a consistent supply across the nation after initial panic buying at the onset of the war.
The government also established new powers that allow it to take on the financial risk of importing additional fuel and fertiliser.
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