$10 billion fuel security package welcomed

The upcoming federal budget will include a $10 billion Australian Fuel Security and Resilience package.

The package will feature:

• $7.5 billion for the establishment of a Fuel and Fertiliser Security Facility to increase supply and storage of fuel and fertiliser by providing financial support, including loans, equity, guarantees, insurance and price support.
• $3.2 billion to establish a Government-owned Australian Fuel Security Reserve of around a billion litres to increase long-term diesel and aviation fuel supply and storage in combination with an increase to the Minimum Stockholding Obligation (MSO), to increase Australia’s critical fuel reserves to 50 days.
• $10 million to support feasibility studies into new or expanded fuel refining capabilities, to be co-funded with state and territory jurisdictions.

The federal government said its Australia Fuel Security Reserve will focus on regional stockouts and supply constraints for essential users in the event of another supply crisis.

National Farmers’ Federation President Hamish McIntyre welcomed the move.

“These are practical decisions that will increase our liquid fuel and fertiliser security,” Mr McIntyre said.

“The Prime Minister has been clear that the fuel reserve will focus on regional stockouts and supply constraints for essential users.

“This is critical, and we want to ensure farmers and fishers see the benefit of this on the ground.”

Mr McIntyre said he was also pleased that the announcement extends to government-backed loans, equity, guarantees, insurance and price support for the supply and storage of fertiliser.

“Reliable and affordable fuel and fertiliser underpins every stage of food production, and recent events have shown just how exposed Australia is to global shocks.

“We’ll continue working with the government to ensure these measures deliver for producers to keep food and fibre growing and moving.”