Australia has announced plans to establish a national fuel stockpile of one billion litres as part of efforts to protect the country from a possible energy crisis caused by ongoing conflict in the Middle East.
Prime Minister Anthony Albanese said on Wednesday that the government-owned reserve would strengthen Australia’s long-term supply of diesel and aviation fuel.
Speaking to reporters, Albanese stressed that protecting Australians from the impact of the international crisis remains the government’s top priority.
“Our number one priority remains shielding Australia from the worst effects of this crisis,” he said.
The Australian government is expected to provide more details about the fuel reserve initiative next week during the presentation of its annual national budget.
Energy Minister Chris Bowen noted that Australia is among the few members of the International Energy Agency without a national fuel reserve.
According to Bowen, the government has been reviewing strategies to improve the country’s preparedness for future global shocks.
“We have been looking at what we need to do to better prepare Australia for future shocks,” Bowen said.
“We know the international environment is getting more unstable, not less.”
Australia’s vulnerability to fuel disruptions has increased due to its geographical isolation and limited domestic refining capacity, with only two operational oil refineries remaining in the country.
Like many nations across Asia and the South Pacific, Australia relies heavily on oil shipments passing through the Strait of Hormuz, a key global energy route that previously handled about one-fifth of the world’s oil and gas supplies.
Shipping activity through the strategic waterway has significantly declined since the United States and Israel launched strikes against Iran on February 28, raising fears of broader instability across global energy markets.
