The federal Coalition has unveiled an $800 million plan to significantly boost Australia’s fuel reserves, arguing the move is critical to strengthening national security and protecting supply chains during global disruptions.
Under the proposal, a future Coalition government would more than double the country’s minimum fuel stockholding requirements to 60 days.
The plan centres on lifting the Minimum Stockholding Obligation (MSO) and building at least one billion litres of additional onshore fuel storage, with new infrastructure funded through a dedicated Australian Fuel Security Facility.
Opposition Leader Angus Taylor said the policy is designed to address Australia’s heavy reliance on imported fuel and its exposure to international shocks, particularly in light of ongoing geopolitical tensions affecting global oil supply.
“This is a plan the prime minister should pick up today. No excuses, no delays,” Taylor said.
He stressed the central role fuel plays in the economy, adding: “If fuel stops, Australia stops. It’s that simple. Trucks don’t move, supermarkets don’t stock, businesses shut their doors.”
The Coalition argues the increase to a 60-day reserve would bring Australia closer to international benchmarks, though still short of the 90-day requirement set by the International Energy Agency.
Currently, Australia’s fuel reserves vary by product but remain below that global standard, with concerns repeatedly raised about the country’s limited domestic refining capacity and reliance on imports.
The proposed changes would be phased in over several years, with the Coalition targeting full implementation by around 2030.
Estimates suggest it could add around one cent per litre to fuel prices, reflecting the increased expense of maintaining larger reserves and expanding storage infrastructure.
The Coalition has challenged the Albanese government to match the funding commitment, positioning fuel security as a key political battleground ahead of the next federal election.
The government has indicated it is also considering measures to strengthen fuel resilience, including boosting domestic storage and refining capacity.
Labor has indicated Australia’s energy resilience will be a feature of the upcoming federal budget presented by Treasurer Jim Chalmers on May 12.
Energy and Climate Change Minister Chris Bowen revealed at the weekend that Australia had 44 days’ worth of petrol, 33 days of diesel, and 30 days of jet fuel in reserve.