Western Australia Launches 4M-Liter Diesel Reserve

Western Australia's government announced plans Monday to create a state-specific strategic reserve of diesel fuel, acquiring four million liters at a cost of about 10 million Australian dollars to address acute shortages in its remote regions and key industries. The move comes amid a nationwide fuel crisis triggered by blockades in the Strait of Hormuz, which have disrupted global oil supplies since late February 2026 due to the ongoing conflict involving Iran.

The initial shipment, sourced from BP and imported via Cambridge Gulf, is set to arrive in the coming weeks and will be stored at a facility in Wyndham in the Kimberley region at no additional charge. Officials indicated the reserve could expand to 12 million liters, utilizing existing distribution networks to target mining operations, agriculture, and isolated communities. Western Australia, the nation's largest wheat producer and a hub for iron ore and gold mining, accounts for roughly 25 percent of Australia's diesel consumption, making it particularly vulnerable. Statewide, reports of diesel shortages at gas stations have declined to 18 out of 771 locations in the week ending April 10, down from 61 the previous period.