Australia’s fuel reserves would be more than doubled to 60 days under a coalition plan to strengthen the nation’s supply chains in the face of global crisis.
Opposition Leader Angus Taylor and Nationals leader Matt Canavan will on Tuesday announce their bid to bolster fuel security.
The proposal includes setting up an $800 million facility to deliver at least one billion litres of new onshore storage, with a focus on diesel.
The plan could be adopted by Prime Minister Anthony Albanese “without delay” because Australia would cease to operate if it ran out of fuel, Mr Taylor said.
“More fuel in reserve, more storage on the ground, and a country that can stand on its own two feet,” he said.
“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.”
The Liberals and Nationals are calling on the federal government to lift baseline fuel stocks from January, which would mandate current levels as the new minimum.
This would increase minimum levels for critical fuels as a whole by almost a quarter.
Under the minimum stockholding obligation, importers are required to have a baseline level of domestic fuel stocks.
Petrol and jet fuel mandate 27 days of supply, while importers must have enough diesel to last 32 days.
Lifting of the minimum stockholding obligation to 60 days would raise the price of fuel at the bowser by about 1 cent per litre, according to coalition analysis.
But the move is “prudent insurance” to prevent severe economic damage during a future crisis, it argues.
The proposal means fuel suppliers would need to build additional storage and buy extra fuel, with financial support on offer to help manage the cost.
Senator Canavan said households and businesses needed confidence fuel will be there when they need it.
“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,” he said.
“We cannot keep hoping for the best. We need to be ready, and this plan gets us there.”
Under the International Energy Agency’s agreement, member countries which include Australia, are required to hold 90 days’ worth of emergency oil stocks.
As at mid-April, Australia had 49 days of fuel stocks, according to the agency.
The Albanese government has previously said complying with the 90-day requirement would cost $20 billion.
Nations are allowed to store stocks outside of their countries and can count reserves held abroad as part of the requirement.
Conflict in the Middle East is strangling global fuel supply as key shipping lanes close.
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