Australia announces 7.2 billion US Dollars to boost national fuel stockpiles

By  News On Air   May 05, 2026

Australia announced a 7.2 billion US Dollar fuel Security and Resilience package to boost its national fuel stockpiles and ​establish a permanent government-owned fuel reserve in its upcoming budget proposal.

Australian Prime Minister Anthony Albanese said the plan includes creating a government-owned fuel reserve of around 1 billion liters, enough to cover at least 50 days of fuel demand. This is meant to protect the country from supply disruptions, especially since Australia imports about 80 percent of its fuel and has faced shortages during the Middle East conflict.

About 2.11 billion US dollars will be used to build the reserve. Fuel companies will also be required to increase their stock levels from 30 days to about 40 days. The government will spend another 4.95 billion US dollars to boost fuel and fertiliser supplies through financial support, such as loans and guarantees.

Australia’s Energy Minister Chris Bowen said this is a major policy change, as Australia previously did not have its own government fuel reserve, unlike many countries in the International Energy Agency.