Major boost for domestic fuel storage
The Federal Government has unveiled a major investment in boosting Australia's local fuel reservesAustralia's domestic fuel reserves are set to receive a major boost, with the Morrison Government announcing it will make a $211 million investment in building new fuel storage facilities to increase the nation's fuel security and reduce our reliance on the US reserve should fuel supply chains be disrupted.
The move is a part of the Federal Government's 2020-21 budget, and also includes measures to support local refineries.
The initiative will focus on three key measures:
• Investing $200 million in a competitive grants program to build an additional 780ML of onshore diesel storage
• Creating a minimum stockholding obligation for key transport fuels
• Backing the refining sector by entering into a detailed market design process for a refinery production payment
Greater fuel security
Prime Minister Scott Morrison said fuel security was critically important, and that Australia had been fortunate not to experience any major fuel supply shock in over 40 years.
"Our positive changes to the fuel market will ensure Australian families and businesses can access the fuel they need, when they need it, for the lowest possible price,” he said.
"Fuel security underpins our entire economy. Not only does it keep Australia moving, the industry supports thousands of people across the country and this plan is also about helping keep them in work.
"Like all sectors of the economy, the COVID-19 pandemic is having an impact on Australia's fuel industry. The events of 2020 have reminded us that we cannot be complacent. We need a sovereign fuel supply to shield us from potential shocks in the future."
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The Australian Trucking Association has welcomed the announcement.
"The ATA has long argued for increased fuel security, and we are pleased the government is taking the next steps to ensure this," ATA CEO Ben Maguire said.
"Fuel security is crucial to trucking, our economy, and keeping Australian communities supplied.
"Today's announcement will see action to increase our onshore stocks, in particular diesel due to its critical importance to the trucking industry.
“The trucking industry depends on fuel. Without it, our supermarkets would be empty, and deliveries would be brought to a standstill."
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