The Australian government has unveiled a A$10bn package to bolster fuel supplies, aiming to protect the country from future global oil price shocks exacerbated by the Middle East conflict.
Under the plan, private companies will be required to hold an extra ten days of fuel, increasing Australia’s overall reserves of diesel and jet fuel to a 50-day supply. A government-owned reserve will be established to manage the strategic stocks.
Energy Minister Chris Bowen said on Wednesday: “We know that the international environment is getting more unstable, not less. And so, we have to look at what we have done in this crisis and see what we can do to build Australia to be better prepared even for the next international crisis, whenever it might occur.”
The package raises questions about its impact on petrol pump prices, whether the funds could be better allocated elsewhere, and the feasibility of expanding onshore refining capacity.
