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Posted by David Sexton
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19 Aug, 2026
SHAPING the next phase of Australia’s fuel security agenda is the aim of two consultation papers announced by the federal government this week.
The Commonwealth's $14.8 billion Fuel Security and Resilience Package seeks to protect Australians from global fuel shocks and apply downward pressure on costs and accelerate the transition to “home-grown, sovereign fuels”.
Announced in the 2026-27 budget, the Fuel Security and Resilience Package is focused on strengthening the nation's resilience against international disruptions while creating new economic opportunities for Australian industry”.
The Strengthening Australia's Fuel Security and Resilience Consultation Paper seeks feedback on key design features of three major measures that underpin the government's approach to fuel security: establishing the Australian Fuel Security Reserve increasing the Minimum Stockholding Obligation backed by co-investment in fuel storage supporting the continued operation of Australia's two remaining domestic refineries beyond 2030.
Climate change and energy minister Chris Bowen said Australia could not afford to be vulnerable to fuel supply disruptions beyond our shores.
“That's why we’re making a historic investment to strengthen fuel security, support domestic refining and build the cleaner fuels industries of the future,” he said.
"We're strengthening Australia's resilience by building larger fuel reserves, increasing stockholdings and backing domestic industry to produce more of the fuels we need here at home.”
Infrastructure and transport minister Catherine King said they were “investing in the fuels our aviation, maritime and freight industries need”.
“Currently, we export up to $6 billion of feedstocks each year, including canola and tallow, for global markets,” Ms King said.
“By building a low carbon liquid fuels industry right here, we will create more jobs, build regional economies, strengthen our fuel security and future-proof our transport industries.”
Agriculture minister Julie Collins said fuel security was “about making sure Australian communities, families, businesses and industries can rely on the supplies they need – including our farmers and producers”.
“This investment will help strengthen our resilience to global disruptions and provide Australia with critical and reliable fuel to keep our food production strong,” she said.
“Building more domestic fuel production creates an exciting opportunity to add value to Australian feedstocks bringing more opportunities for our farmers and foresters.”
The Securing Australia's Cleaner Fuels Industry Consultation Paper can be found here
The Strengthening Australia's Fuel Security and Resilience Consultation Paper can be found here.
The Australian Logistics Council (ALC), meanwhile, welcomed the government’s consultation on fuel security and low-carbon liquid fuels.
Chief executive Hermione Parsons said the consultation reflected issues ALC has consistently raised with government through its fuel security advocacy.
“Fuel security is fundamental to Australia’s economic and national resilience,” Dr Parsons said.
“For the supply chain logistics and freight transport industry, the question is not simply how much fuel Australia holds.
“It is whether fuel can reach the businesses, transport operators and communities that need it when normal supply chains are under pressure.”
