Speculation builds on how upcoming budget will address fuel supply
Fuel security is a key concern for the Australian government as it prepares to hand down the federal budget on May 12, with experts highlighting vulnerabilities exposed by the Middle East conflict. Industry and government are weighing options such as increased fuel stockpiles and refinery upgrades to reduce reliance on unstable global markets. However, measures face challenges due to high costs and potential increases in fuel prices for consumers.
- ▪The government is expected to address long-term liquid fuel supply security in the upcoming May 12 budget.
- ▪Current fuel reserves are slightly above the 30-day minimum stockholding obligation, with 44 days of petrol, 33 of diesel, and 30 of jet fuel.
- ▪The Coalition has proposed doubling minimum fuel reserves to 60 days at a cost of $6 billion, to be funded by a 1 cent per litre fuel price increase.
- ▪Upgrades to existing refineries may be considered, though the government has downplayed funding a new refinery.
- ▪Storing enough fuel to meet Australia’s 90-day International Energy Agency commitment could cost an estimated $20 billion.
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Fuel security a 'tricky balancing act', experts say as budget nearsBy political reporter Nicole AsherTopic:Federal GovernmentWed 29 Apr 2026 at 5:32amWed 29 Apr 2026 at 5:32amWed 29 Apr 2026 at 5:32amFuel industry experts are anticipating a budget focus on fuel. (ABC News: Digby Werthmuller)In short: Fuel refinery upgrades have been flagged as a possible option for energy security reform, as the Iran war continues to impact the supply chain. Energy Minister Chris Bowen has made clear energy security remains a key focus for the government in budget considerations. What's next?The treasurer will hand down the federal budget on May 12.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at ABC News (Australia).