Govt moves to secure Australia oil supply

The federal government wants parliamentary approval for powers to buy oil contracts to ensure Australia meets international obligations to stockpile supplies.

The federal government wants parliamentary approval for powers to buy oil contracts. (AAP)

The federal government will be able to buy oil stocks to make sure the country has enough to ride through any unexpected shortages under new legislation before parliament.

As a member of the International Energy Agency, Australia is supposed to keep 90 days worth of oil stocks on hand but hasn't done so since 2012, Energy Minister Josh Frydenberg told parliament on Thursday.

A new bill would give the government powers to enter into commercial oil contracts, with the initial plan to purchase 400 kilotonnes in the 2018/19 and 2019/20 financial years.