Albanese Announces A$10B Fuel Security Package

Australian Prime Minister Anthony Albanese announced a A$10 billion fuel security package on Wednesday in Sydney, aiming to establish a government-owned reserve of about one billion litres of diesel and aviation fuel to ensure at least 50 days of onshore supplies amid disruptions from the Middle East conflict.

The initiative, to be detailed in next week's federal budget, addresses Australia's heavy reliance on imported fuel, which accounts for nearly 80 percent of its needs. The country holds among the lowest stockpiles in the developed world, leaving it vulnerable to global supply shocks. Recent tensions in the Strait of Hormuz, including a U.S. naval blockade and attacks on vessels attributed to Iran, have led to localized shortages, higher prices and constraints on oil and gas deliveries.

The package includes A$3.2 billion to build the one-billion-litre reserve and A$7.5 billion for a fuel and fertiliser security facility to boost storage and supply. It also allocates A$34.7 million over four years to increase the minimum stockholding obligation by 10 days, with support for new and refurbished storage infrastructure. The government plans feasibility studies with states for...