Australia's fuel reserves boosted to strengthen resilience and supply

The Albanese Government is ensuring Australians have a reliable and available stockpile of fuel to protect consumers from major disruptions to supply.

The guaranteed minimum stock levels of traditional transport fuels will improve domestic fuel reserves to protect motorists, businesses and industries from future market turmoil and the ongoing global fossil fuel crisis triggered by Russia’s illegal invasion of Ukraine.

The Minimum Stockholding Obligation will require Australia’s two refineries in Geelong and Brisbane, and Australia’s major importers of refined fuels, to hold baseline stocks of:

• petrol –  24 days from 1 July 2023. Increasing to 27 days in 2024 for importers
• diesel fuel –  20 days from 1 July 2023. Increasing to 32 in 2024 for importers
• jet fuel –  24 days from 1 July 2023. Increasing to 27 days in 2024 for importers.

The obligation will also require refiners and importers to report stock levels fortnightly. The requirement will become weekly from 1 July 2024.

Minister Bowen said the obligation was a crucial measure to protect consumers.

“The Albanese Government is delivering on the commitment to increase domestic fuel reserves, including petrol, diesel and jet fuel stocks, which the previous Government announced, but did not deliver,” Minister Bowen said.

“We are providing greater energy security for Australian households and businesses impacted by global and domestic challenges to supply lines.

“We supported the Fuel Security Act when in opposition and are delivering it in Government.

“Australia’s transition to electric and hydrogen-powered vehicles will also help guard against volatility in coming years.” 

Transitional arrangements within the Minimum Stockholding Obligation will give industry enough time to prepare for the full implementation of the scheme in 2024 and safeguard fuel supplies.

Each regulated entity will have a specific obligation determined with reference to the national target and their own operations.

The arrangements were developed in close consultation with industry after the passage of the Fuel Security Act in June 2021, including public exposure drafts released in January 2022.