Sydney, Australia: Australia will spend A$10 billion, about USD 7.22 billion, to boost national fuel stockpiles and establish a permanent government-owned reserve, Prime Minister Anthony Albanese said on Wednesday, May 6, 2026.
Albanese said the package would ensure Australia holds at least 50 days of fuel onshore to protect the country from future supply shocks. Australia imports about 80% of its fuel and currently relies on private companies to maintain mandated reserves of around 30 days’ supply.
The package includes A$3.2 billion for a fuel reserve of around 1 billion litres of diesel and aviation fuel, according to Reuters. Albanese said the reserve would focus on regional stockouts and supply constraints for essential users during another crisis.
The federal government will also lift the minimum stockholding obligation for importers and refiners by 10 days at a cost of A$34.7 million.
Another A$7.5 billion will fund fuel and fertiliser supplies and storage through loans, equity, guarantees, insurance and price support.
Energy Minister Chris Bowen said Australia was among the few International Energy Agency members without a government-owned fuel reserve. He said the new reserve would add to the minimum stocks private companies must hold.
The National Roads and Motorists Association welcomed the move, with spokesman Peter Khoury saying direct government involvement in storage capacity made sense for national security.
Tony Wood, a senior fellow in the Grattan Institute’s energy program, questioned how the reserve would be deployed and said the federal government should not become a market participant.
