Angus Taylor making the fuel announcement at Park Fuels, Port Kembla, NSW. Photo: Angus Taylor.
Angus Taylor has unveiled a Coalition plan to double Australia’s fuel reserves to 60 days by 2030, bolstering supplies to protect against future crises such as the current one sparked by the Middle East war.
The Opposition Leader said his plan would deliver at least one billion litres of new storage through an $800 million Australian fuel security facility, saying the Federal Government could choose to adopt the plan now.
Under the Coalition’s proposal, the government would work with industry on a roadmap to lift stockholdings in step with new storage coming online.
The Coalition wants the government to lift baseline stockholding levels from 1 January 2027, locking in current average stock levels as the new minimum.
Mr Taylor said that would increase minimum levels for critical fuels in aggregate by nearly 25 per cent and bring Australia within range of its 90-day international oil stockholding ambition.
“This is a plan the Prime Minister should pick up today. No excuses, no delays,” Mr Taylor said.
“If fuel stops, Australia stops. It’s that simple. Trucks don’t move, supermarkets don’t stock, businesses shut their doors.
“We are putting forward a practical plan to make sure that never happens. More fuel in reserve, more storage on the ground, and a country that can stand on its own two feet.
“This is about protecting Australians’ way of life and restoring their standard of living. You don’t do that with talk. You do it with action.”
Nationals leader Matt Canavan, however, said the $800 million price tag would in reality be closer to $6 billion if it is to cover the cost of the extra 4.4 billion litres of storage required.
“The total cost would be around $6 billion, along with both the storage, extra storage costs, and the cost of actually filling the storage and maintaining that,” Senator Canavan said.
“We’re suggesting that $800 million from Export Finance Australia, which is a government bank effectively, be used to help the private sector fund this.”
The Nationals leader said drivers would have to pay an extra one cent per litre at the petrol pump under the plan, but it was a cost he said most would be happy to bear if it helps to boost Australia’s onshore fuel reserves.
He said families and businesses needed confidence that fuel would be there when they needed it, and the Coalition’s plan focuses on one thing – making sure Australia keeps moving no matter what.
“People in the regions know how serious this is. If the diesel doesn’t turn up, the farm doesn’t run and the shelves go empty,” Senator Canavan said.
“This plan is just common sense. Keep more fuel here in Australia so we are not relying on overseas supply lines that can be cut overnight.
“We cannot keep hoping for the best. We need to be ready, and this plan gets us there.”
Anthony Albanese mocked the Coalition’s plan when asked about it during a media conference at Parliament House on Tuesday (28 April).
The Prime Minister pointed out that most of Australia’s oil refineries closed during the last Coalition government and reserves were sent offshore.
“You’ve got to admire the irony of Angus Taylor, who was the minister in a government where four out of six of our refineries shut and who thought the fuel reserves should be kept in Texas,” Mr Albanese said.
“I haven’t seen the details of the announcement. We’ll wait and see how much of that will be in Texas and how much of it will be in Australia.”
Foreign Minister Penny Wong is visiting Asia to help further shore up Australia’s fuel supplies and “our shared energy security”.
She will hold talks with her counterparts in Japan, China, and South Korea to help coordinate fuel transit and delivery amid the ongoing closure of the Strait of Hormuz, which continues to disrupt global energy markets.
Senator Wong said Asian refineries and the Indo-Pacific region were disproportionately affected.
“Australia will continue working with international partners to help secure the supplies we need – including diesel, petrol and fertiliser – and ensure Australia is prioritised as a reliable energy partner,” Senator Wong said.
“Direct, in-person engagement with counterparts across our region will help ensure we are coordinating effectively as these disruptions continue to unfold.”
Original Article published by Chris Johnson on Region Canberra.
