The Albanese Government will maintain flexibility in the domestic fuel market, by extending the temporary reduction of the baseline Minimum Stockholding Obligation for petrol and diesel until 31 January 2027.
This precautionary action will continue to allow suppliers to hold 20 per cent less diesel and petrol in reserve if they commit to delivering more fuel into the domestic market and prioritising regional supply.
The extension recognises higher fuel demand in regional Australia during the grain harvest and summer holiday travel season and gives industry ongoing flexibility to respond quickly in the event of another spike in demand.
Since March, the temporary reduction has helped address supply chain pressures caused by periods of elevated demand, especially in regional Australia.
Australia's domestic reserves remain healthy, fuel continues to arrive as expected, and essential services, businesses and communities are operating as normal.
Australia remains at level 2 of the National Fuel Security Plan and we continue to have more fuel in Australia than we did at the beginning of the Iran war due to the Government's swift and sensible actions to secure fuel supply, including:
- Securing more fuel internationally through the $7.5 billion Fuel and Fertiliser Security Facility, by partnering with Ampol, BP Australia, Viva, IOR and Freedom Fuels to help secure almost 800 million litres of additional diesel and 150 million litres of additional jet fuel, adding a further buffer to Australia's fuel security.
- Building long term fuel resilience through the $3.2 billion Australian Fuel Security Reserve and increasing the Minimum Stockholding Obligation, to increase Australia's reserves of diesel and jet fuel to 50 days
- Strengthening the Fuel Security Services Payment to ensure the future of Australia's last two remaining oil refineries, and providing $10 million in 2026-27 to develop feasibility studies to expand our domestic refining capacity
- Securing Australia's future fuel sovereignty through the $1.1 billion Cleaner Fuels Program, to boost the production of low-emission fuels in Australia, and working with industry on a market measure to drive demand and to reduce our reliance on imported fuels
Our healthy domestic stockholdings have given Government confidence that this extension strikes the right balance of keeping fuel reserves in good supply, while maintaining flexibility in the local market should global fuel market conditions deteriorate amid unwelcome development.
The Government is continuing to strengthen Australia's fuel security and resilience, including through the recently released consultation paper on Australia's Fuel Security and Resilience Package.
Quotes attributable to Minister for Climate Change and Energy Chris Bowen:
"Australia remains fuel secure - we continue to have more fuel in Australia than we did at the beginning of the war with 41 ships having arrived on our shores so far this month alone.
"The Albanese Government is taking practical action to help keep fuel available when and where Australians need it, particularly during busy periods like harvest and the summer holidays.
"This extension keeps fuel reserves in good supply, while maintaining flexibility in the local market. The most important thing Australians can continue to do is to buy the fuel they need - no more and no less.
"Australia's fuel outlook remains secure, and we will continue to work to secure more fuel for the immediate term, while making Australia more sovereign from international energy shocks in the future."
