Angus Taylor has pledged the Coalition will double the nation’s fuel reserves if elected as the Albanese Government prepares to announce big storage moves in the May budget.
News.com.au understands that the Treasurer Jim Chalmers is set to announce a range of measures to improve Australia’s resilience to fuel shocks.
The Coalition will announce its plan to strengthen Australia’s fuel security on Tuesday.
The plan includes a proposal to more than double fuel reserves by increasing the Minimum Stockholding Obligation (MSO) to 60 days.
Mr Taylor will also float a plan to establish an $800 million Australian Fuel Security Facility to deliver at least 1 billion litres of new onshore storage.
The Coalition is calling on the Government to lift baseline stockholding levels from 1 January 2027 in order to increase minimum levels for critical fuels in aggregate by nearly 25 per cent.
“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.”
Nationals leader Matt Canavan warned Australia could no longer hope for the best on energy security.
“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.”
Mr Taylor is calling on the government to work with industry on a clear roadmap to lift stockholdings in step with new storage coming online.
He predicted that “if we start today, delivering 60 days of fuel security by 2030 is achievable.”
“Together with measures announced last week to unlock Australia’s oil and gas reserves, the Coalition’s plan will bring Australia within range of our 90 day international oil stockholding ambition.”
It’s expected the Albanese Government will announce its own plans to boost storage capacity shortly.
Energy Minister Chris Bowen and Labor frontbencher Madeline King are leading the work.
Foreign Minister Penny Wong is travelling to Japan, China and Korea in a diplomatic push to shore up fuel security.
“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,” she said in a statement.
On Sunday, Energy Minister Chris Bowen insisted that fuel stocks appeared to be “very solid.”
He confirmed that 58 ships carrying fuel were on their way to Australia.
The national fuel stocks still fall well below the International Energy Agency’s 90-day fuel reserve requirement, which has remained the case in Australia for years.
Read related topics:Anthony Albanese