CANBERRA, Aug. 18 (Xinhua) -- The Australian government on Tuesday said it will establish a strategic reserve of 1 billion liters of jet fuel and diesel to protect against future supply shocks.
Minister for Climate Change and Energy Chris Bowen and Transport Minister Catherine King said in a joint statement with Agriculture Minister Julie Collins that the government will invest 3.2 billion Australian dollars (2.3 billion U.S. dollars) to establish the Australian Fuel Security Reserve.
They said that the government-owned reserve will consist of a combined 1 billion liters of diesel and jet fuel to provide a safeguard against international supply disruptions and fuel market volatility.
"Australia cannot afford to be vulnerable to fuel supply disruptions beyond our shores. That's why we're making a historic investment to strengthen fuel security," Bowen said.
Funding for the reserve will come from the 14.8 billion AUD (10.5 billion USD) allocated for fuel security and resilience measures in the federal budget for 2026-27.
The security and resilience funding was announced by Prime Minister Anthony Albanese in May amid the global oil supply shock caused by the conflict in the Middle East, which drove Australian fuel prices to record-high levels.
Bowen, King and Collins also said on Tuesday that the government has opened consultation periods on a plan to grow Australia's domestic low-carbon liquid fuels industry to reduce reliance on imported fuels and on options to support the country's two remaining oil refineries to continue operating beyond 2030.
King said that building a domestic low-carbon liquid fuels industry would create jobs, build regional economies, strengthen fuel security and future-proof transport industries. ■
