- The Morrison government is investing up to $260 million to increase Australia’s diesel storage capacity to strengthen long-term fuel security
- The government is supporting 10 projects throughout Australia via the Boosting Australia’s Diesel Storage initiative
- Minister Angus Taylor said the grants will support roughly 1000 new jobs and a 40 per cent increase in Australia’s diesel stockholdings
- These grants will pay up to 50 per cent of overall qualifying project costs that are scheduled to begin construction in mid-2021 and be finished in three years
The Morrison government is investing up to $260 million to enhance Australia’s diesel storage capacity to fortify long-term fuel security.
The government is supporting 10 projects throughout Australia via the Boosting Australia’s Diesel Storage initiative, which will support roughly 1000 new jobs and a 40 per cent increase in Australia’s diesel stockholdings.
Minister for Energy and Emissions Reduction Angus Taylor stated that the grants enhance the amount of diesel supply that can be retained onshore, generate employment, and assist keep consumer fuel costs reasonable.
“We are delivering on our commitment to protect Australian motorists from fuel disruptions by building around 780 megalitres of diesel storage across the country,” he 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.”
Mr Taylor said the grants, alongside the support to keep Australian refineries operating until at least mid-2027, will keep fuel in adequate supply.
“Many of these projects are located in strategic regional locations, which will help minimise shortages of diesel during peak usage periods and drive over $636 million of public and private sector investment into these areas,” he said.
In addition to the increased diesel storage, these initiatives will provide 202 megalitres of additional petrol and jet fuel storage, which will be supported by the private sector.
The government said the initiative will help the industry achieve the new minimum stockholding requirement (MSO), which will require the industry to hold petrol, jet fuel, and diesel inventories at or above pre-COVID national average levels by mid-2022.
The MSO will require importers to retain a 40 per cent increase in fuel inventories beginning in mid-2024.
These grants will pay up to 50 per cent of overall qualifying project costs that are scheduled to begin construction in mid-2021 and be finished in three years.
The Boosting Australia’s Diesel Storage program is a component of the government’s fuel security package announced in the 2020-21 Budget.
It aims to secure Australia’s long-term fuel supply by increasing onshore stockholdings and sovereign refining capability to meet our needs during an emergency and in the future.
Queensland, Australian Capital Territory and Tasmania have been left out of the funding, with the successful projects residing in New South Wales (4), Western Australia (2), Victoria (2) South Australia (1), and Northern Territory (1).