The Australian Government has announced next week's Federal Budget will include an Australian Fuel Security and Resilience package aimed at protecting the nation’s energy interests and boosting fuel confidence among travellers.

The package will provide more than $10 billion to secure Australia’s near-term fuel and fertiliser security, establish a permanent Government-owned Australian Fuel Security Reserve of around a billion litres, and lift the Minimum Stockholding Obligation by around 10 days for every type of fuel.

This will support an overall expansion of Australia’s onshore fuel reserves to ensure at least 50 days of fuel supply and storage of diesel and aviation fuel.

The Government will consult on implementation of the fuel reserve to enable the ability to underwrite or purchase fuel, support storage, and trade stocks as needed to ensure our fuel security during severe or prolonged fuel supply disruption.

An additional 10 days of fuel holdings through an uplift to the Minimum Stockholding Obligation for all fuels is also supported in the budget with $34.7 million over four years to support ongoing management of Australia’s fuel security, including Government engagement with industry to plan the uplift in fuel holdings.

It will be achieved by increasing current requirements on refiners and importers holding stocks of aviation fuel, petrol and diesel.

The changes will take place progressively over time, backed by support to invest in new and refurbished fuel storage to support the uplift in fuel stocks.

The Government will work with state governments to undertake feasibility studies into new or expanded refining capabilities, building on work with current refinery operators to retain our current refining capability in the decade beyond 2030.

More details of the Australian Fuel Security and Resilience package will be released next week as part of the Federal Budget.

Industry welcomes fuel security package

The tourism sector has welcomed the Australian Government’s fuel security measures.

Tourism & Transport Forum (TTF) Australia CEO Margy Osmond said increasing Australia’s diesel and jet fuel reserves would play an important role in supporting the entire visitor economy.

“These measures are a critical step towards boosting fuel supplies over the long term to help more Australians feel confident in booking a holiday and getting back on the road,” Ms Osmond said.

Ms Osmond said uncertainty around fuel availability was impacting travel decisions, particularly for regional and remote destinations.

“We’ve seen growing hesitation from travellers considering longer road trips, particularly into regional and remote areas, where confidence in fuel availability is essential,” she said.

“Anything that improves certainty, whether through supply or better information, will help encourage more people to take that road trip and support visitation to these communities.”

Ms Osmond also praised the Australian Government for supporting aviation fuel resilience and national connectivity.

“Increasing jet fuel reserves is an important step in helping manage future supply disruptions and maintain reliable air services for tourism, business and regional communities,” she said.

“Consistent access to fuel underpins not just travel, but the broader supply chains that keep tourism operators running, from accommodation to attractions and transport services.”

Ms Osmond said TTF would continue to work closely with government and industry partners to support a strong, connected and resilient tourism sector.