CANBERRA, May 6 (Xinhua) — Australia will allocate more than AUD10 billion (US$7.24 billion) in next week’s federal budget to strengthen fuel security, Prime Minister Anthony Albanese said on Wednesday, reported Xinhua.
The package will include the creation of a national fuel reserve and lift the minimum stockholding obligation by around 10 days for every type of fuel, according to a government statement.
“This will support an overall expansion of Australia’s onshore fuel reserves to ensure at least 50 days of fuel supply and storage of diesel and aviation fuel,” Albanese told a press conference in Sydney.
The plan includes AUD7.5 billion to establish a fuel and fertiliser security facility, offering financial support such as loans, equity, guarantees, insurance and price support to increase domestic supply and storage capacity.
A further AUD3.2 billion will fund a government-owned reserve of about one billion litres, focused on diesel and aviation fuel.
The government said the reserve would focus on regional stockouts and supply constraints for essential users in the event of another supply crisis.
An AUD10 million allocation will also be made for feasibility studies into new or expanded refining capacity, conducted in collaboration with state governments, the statement said.
Albanese also urged people to “continue to do what they can to conserve fuel.”
“This is the biggest oil crisis that the world has ever seen, with an impact in every country, but in particular in our region,” the prime minister said.
Energy Minister Chris Bowen said the government had focused on steering Australia through “the worst supply crisis in history,” adding that fuel supply efforts helped lift April imports to 92 shipments, the highest this year, leaving stocks above levels seen at the start of the US-Israel and Iran conflict.
Opposition Leader Angus Taylor said the plan is “too little, too late,” noting that the Coalition wants to see fuel reserves at 60 days of supply, and towards “90 days that we want to see.”
