The Australian Government is taking action to secure the nation’s long-term fuel supply. Prices will be kept low for consumers and over 1000 new jobs will be created. $211 million will be invested in building new domestic fuel storage and backing local refineries to stay open wherever commercially possible.
The measures will be delivered through a combined market and regulatory framework, with 3 key elements:
- Investment of $200 million in a competitive grants program to build an additional 780ML of onshore diesel storage.
- Creation of a minimum stockholding obligation for key transport fuels.
- Backing of the refining sector by entering into a detailed market design process for a refinery production payment.
The Hon Angus Taylor MP, Minister for Energy and Emissions Reduction, said, ‘Almost all Australians are reliant on fuel and it is the lifeblood of so many sectors in our economy. Our farmers and miners rely heavily on diesel to do their jobs and provide services, while the transport sector sources 98% of its energy from liquid fuels.’
A minimum stockholding obligation will act as a safety net for petrol and jet fuel stocks, and increasing diesel stockholdings by 40%.
Supporting refineries will ensure Australia has the sovereign capability it needs for any event, protect families and businesses from higher prices and support thousands of jobs across the economy through the recovery from COVID-19.
The government will work with industry over the next 6 months on the legislative and regulatory design of the package.
For more information, see the Minister’s media release.