Australia has announced plans to establish a massive national fuel reserve of one billion litres to address growing global energy instability caused by the ongoing conflict in the Middle East.
Prime Minister Anthony Albanese made the announcement on Wednesday, according to AFP.
Albanese said the government-owned reserve would primarily ensure long-term supplies of diesel and aviation fuel. He stated that protecting Australia from the negative impacts of the current global crisis remains the government’s top priority.
“We are focused on safeguarding Australia against the adverse effects of the present instability,” the Prime Minister told reporters.
Further details of the initiative are expected to be included in Australia’s annual national budget, scheduled to be presented next week.
Australian Energy Minister Chris Bowen said that although Australia is one of the member countries of the International Energy Agency (IEA), it previously lacked a dedicated national fuel reserve system.
“We are preparing for potential future shocks,” Bowen said, adding that the current international environment is becoming increasingly unstable.
Australia currently operates only two oil refineries, leaving the country highly vulnerable to disruptions in global energy supply chains. Like many countries in Asia and the South Pacific region, Australia relies heavily on energy shipments passing through the Strait of Hormuz.
Around one-fifth of the world’s oil and gas trade traditionally moves through the strategic waterway.
Shipping activity through the Strait of Hormuz has reportedly been severely disrupted since the United States and Israel launched military operations targeting Iran on February 28, significantly increasing concerns over global energy security and supply stability.
Source: AFP