The Australian federal government has unveiled a Fuel Security and Resilience package exceeding AUD10bn (USD7.2bn) (Australian government, 06/05/2025).
First, AUD7.5bn (USD5.4bn) will be allocated to a new Fuel and Fertiliser Security Facility, designed to support domestic supply chains through financial instruments such as loans, guarantees, equity, and price support mechanisms.
Moreover, AUD3.2bn (USD2.3bn) will fund the creation of a government-owned Australian Fuel Security Reserve of approximately 1 billion litres, primarily targeting diesel and aviation fuel, with a focus on addressing regional supply disruptions and emergency scenarios.
In addition, a smaller allocation of AUD10m (USD7.2m) will support feasibility studies for expanding or developing domestic refining capacity in coordination with state governments.
In parallel, the government will increase the Minimum Stockholding Obligation (MSO) for refiners and importers across all fuel types, adding 10 days of mandatory reserves. This measure, supported by AUD35m (USD25m) for implementation and industry coordination, is expected to lift Australia’s total onshore fuel coverage to at least 50 days. The policy also includes provisions for government intervention in fuel markets during crises, including the ability to procure, store, and trade fuel stocks.
Interested in Global Energy Research?
Enerdata's premium online information service provides up-to-date market reports on 110+ countries. The reports include valuable market data and analysis as well as a daily newsfeed, curated by our energy analysts, on the oil, gas, coal and power markets.
This user-friendly tool gives you the essentials about the domestic markets of your concern, including market structure, organisation, actors, projects and business perspectives.