A federal government policy paper looking at Australia's future energy needs focuses on pushing down power prices and explores ways of using energy more efficiently.
But it also includes a government pledge to restore Australian oil reserves to international standards that could have a multi-billion dollar impact on the cost of fuel.
Released by Industry Minister Ian Macfarlane, it's intended to be the basis for an integrated energy policy.
Mr Macfarlane says there is a need for competitiveness in Australian energy businesses in international markets through lower costs, less regulation, lower taxes and more competition.
He says the policy framework will aim to achieve more productive use of energy, while fostering innovation and entrepreneurship to grow jobs and exports.
"It is about ensuring that in the energy market there is strong competition, that there is productivity as a result of that competition and policy and finally that there is investment, investment with confidence in the energy networks that drive the Australian economy. This is a policy about now and about the future."
But the policy paper also contains an expensive plan to increase Australia's oil reserves.
International Energy Agency rules say members must have at least 90 days worth of oil imports in reserve.
Australia holds only 52 days worth at the moment.
Critics have argued this puts Australia in danger of quickly running out of fuel should there be an incident, such as a terrorist attack or war, which cuts supplies from overseas.
Industry Minister Ian Macfarlane says the government recognises the problem but the move will cost consumers and oil companies.
"That is not a fuel security issue for Australia it is an international obligation in relation to our ability to react to an international crisis somewhere in the world but we are committed to addressing that this year but if we are to return to 90 days stock, either by using tickets or by storing oil and fuel here, it comes at a very, very significant cost. We're talking billions of dollars. And that cost will almost undoubtedly be born particularly by industry and motorists."
Opposition Leader Bill Shorten says he'll read the policy paper in detail before commenting on all the issues in it.
Mr Shorten says there are some real concerns over Australia's fuel independence.
"We'll have to look at the energy white paper and the reports today and consider them in depth. But there is a bit of an issue. We've seen a lot of our oil refineries close. You know for economies of scale the multi-nationals says and there has been a growing concern in certain areas that this makes us more vulnerable to interruption in fuel supply in the future."
Another plan contained in the document, and which is sure to draw the ire of Green and environmental groups, is the issue of coal seam gas which cost the national party two seats at the New South Wales state election.
Mr Macfarlane says the federal government is keen to push ahead with coal seam gas in the face of a stalemate on industry development in New South Wales and Victoria, where all onshore gas drilling is currently banned.
Wholesale gas prices have already surged from historical levels of 3 dollars per gigajoule to 8 dollars for some long-term contracts because of an expected tripling in east coast demand over the next two years.
The policy paper blames rising natural gas prices on what it calls "unnecessary" state moratoriums on coal-seam gas developments but says higher gas prices are inevitable even with increased supply due to international demand.
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