Albanese unveils fuel security package after national cabinet meeting

The federal budget will include a $10bn fuel security and resilience package, Anthony Albanese has announced, part of which will fund the establishment of an Australian-owned onshore fuel security reserve.

“It is aimed at making sure Australians can have more confidence in protecting our energy sovereignty, not just during this crisis but going forward as well,” the Prime Minister said.

Mr Albanese said $7.5bn would go towards providing financial support for the supply of fuel and fertiliser, including loans, equity, guarantees, and insurance, while $3.2bn would fund the onshore fuel security reserve.

The reserve would hold about 1bn litres.

Mr Albanese also announced the minimum stockholding obligation would be raised to increase Australia’s critical fuel reserves to 50 days.

This measure was first proposed by the Coalition, who sought to double the MSO to 60 days.

His government would also invest $10m to support feasibility studies into new expanded refinery capabilities. These would be co-funded with state and territory jurisdictions.

“We know there is at least one of serious proposal that will receive the support of a state government and federal government to examine the possibility of additional refining capabilities going forward as well,” Mr Albanese said.

Earlier, Treasurer Jim Chalmers told Sky News: “The fuel security part of the budget is all about securing more fuel. It’s about more resilient supply chains,” he said.

“It’s about funding this fuel tax cut, which is taking some of the edge off these higher petrol prices from the war in the Middle East.” Mr Chalmers said the package would focus on securing more fuel for motorists and industry.

“It’s a really important part of the budget that we will hand down on Tuesday night,” he said.

More to come