The Morrison Government is investing up to $260 million to expand Australia’s diesel storage capacity as part of its commitment to boost long-term fuel security, create jobs and keep prices low.
Through the Boosting Australia’s Diesel Storage program, the Government is backing ten projects across Australia that will support around 1,000 new jobs and a 40 per cent increase in Australia’s diesel stockholdings.
Minister for Energy and Emissions Reduction Angus Taylor said the projects will increase the volume of diesel stock we can keep onshore, create jobs and help keep fuel prices low for consumers.
“We are delivering on our commitment to protect Australian motorists from fuel disruptions by building around 780 megalitres of diesel storage across the country,” Minister Taylor said.
“Diesel is vital to Australia’s energy security as it keeps our economy running. It underpins our critical infrastructure, trucking sector and key industries, such as mining and agriculture.”
Federal Member for Barker Tony Pasin said our support to keep Australia’s refineries operating until at least mid-2027 is making sure Australian families and industry can access the fuel they need, when they need it.
“Many of these projects will help minimise shortages of diesel during peak usage periods and drive over $636 million of public and private sector investment into these areas,” Mr Pasin said.
“This investment will ensure that local truckies, tradies, farmers and commuters in Barker have access to the reliable fuel they need.”
“It also helps secure the sovereign fuel stocks we need for any event and complements the Government’s support for Australia’s refineries.”
Along with the additional diesel storage, these projects will also deliver 202 megalitres of additional petrol and jet fuel storage funded by the private sector.
The Boosting Australia’s Diesel Storage program is a key part of the Government’s comprehensive fuel security package, announced in the 2020-21 Budget, to secure Australia’s long-term fuel supply by increasing onshore stockholdings and our sovereign refining capability that meets our needs during an emergency and into the future.
The program will assist industry in meeting the new minimum stockholding obligation (MSO), which will require industry to hold petrol, jet fuel, and diesel stocks at or above pre-COVID national average levels from mid-2022. From mid-2024, the MSO will require importers to hold a 40 per cent increase in diesel stocks.