The National Farmers’ Federation has welcomed the Federal Government’s decision to invest $94 million in establishing an Australian strategic fuel reserve.
“This is a sensible, prudent investment in the security of Australia’s fuel supply,” NFF chief executive Tony Mahar said.
“With oil trading at negative prices for the first time in history, there could not be a better time to establish a strategic fuel reserve in Australia.
“Fuel is essential to allowing farmers to produce the food and fibre that keeps our nation, and indeed many other nations, running in a time of crisis such as the present.
“The strategic reserve will make Australia’s fuel supply more secure and resilient, thereby giving farmers certainty that they will not run dry,” Mr Mahar said.
The fuel will be temporarily stored in the United States while Australia’s storage facilities are being constructed.
Mr Mahar suggested the strategic reserve would be well complemented by other measures, including temporary changes to fuel standards to assist oil refiners resolve COVID-related storage and supply issues.
“This announcement is clear evidence of the Government’s commitment to ensuring Australian farmers have access to a reliable supply of fuel,” Mr Mahar said.