Western Australia is bolstering its fuel reserves to safeguard against supply disruptions from the Middle East, kicking off with the purchase of four million litres of diesel for $10 million.
The Cook government has struck a deal with local independent fuel supplier Cambridge Gulf to purchase and store the diesel in the Kimberley.
The agreement will see additional volumes of diesel coming to Australian shores, with Cambridge Gulf placing extra orders from overseas suppliers.
The fuel is expected to arrive in the coming weeks and will be stored free-of-charge by Cambridge Gulf but 100 per cent owned by the state – meaning the fuel can be directed to where it is most needed.
The state government said having an additional quantity of diesel under Western Australia’s direct control is important for remote Aboriginal communities and key industries such as agriculture which rely heavily on uncontracted fuel volumes.
The option for future fuel purchases is now being considered, with capacity for up to 12 million litres to be stored at the facility.
“I understand the anxiety the global fuel shock has caused, and I want to assure Western Australians that our State Government is doing everything it can to address these concerns,” said Premier Roger Cook.
“That’s why my government acted immediately – leading the nation in our response.”
The announcement comes in the same week the federal government launched a $20 million ad campaign, ‘Every Little Bit Helps”, urging Australians to voluntarily conserve fuel anyway they can.
In Energy Minister Chris Bowen’s Monday update, he told media Australia holds 38 days’ worth of petrol, 28 days’ worth of jet fuel and 31 days’ worth of diesel.
Some 250 petrol stations across the country had run out of diesel, which comes to 4.5 per cent of service stations running dry, he said.