Source: Prime Minister of Australia.
The Morrison Government is taking action to secure Australia’s long-term fuel supply, keep prices low for consumers and create over 1000 new jobs with a $211 million investment in building new domestic fuel storage and backing local refineries to stay open wherever commercially possible.
As part of our 2020-21 Budget, the Government will enhance Australia’s fuel security and bolster local industry through a $211 million investment in new domestic diesel storage facilities, reforms to create a minimum onshore stockholding, and measures to support local refineries.
This will be delivered through a combined market and regulatory framework, with three key elements:
- Investing $200 million in a competitive grants program to build an additional 780ML of onshore diesel storage
- Creating a minimum stockholding obligation for key transport fuels; and
- Backing the refining sector by entering into a detailed market design process for a refinery production payment.
Prime Minister Scott Morrison said Australia’s fuel security was essential for our national security and that we had been fortunate to not have experienced a significant fuel supply shock in over 40 years.
“Our positive changes to the fuel market will ensure Australian families and businesses can access the fuel they need, when they need it, for the lowest possible price,” the Prime Minister said.
“Fuel security underpins our entire economy. Not only does it keep Australia moving, the industry supports thousands of people across the country and this plan is also about helping keep them in work.
“Like all sectors of the economy, the COVID-19 pandemic is having an impact on Australia’s fuel industry. The events of 2020 have reminded us that we cannot be complacent. We need a sovereign fuel supply to shield us from potential shocks in the future.”