WA Government Moves to Create State-Controlled Fuel Reserves
In a significant policy shift, Western Australia's Energy Minister Amber-Jade Sanderson has unveiled plans for the state to develop its own strategic fuel reserves, aimed at bolstering energy security during future emergencies. This initiative comes in response to the ongoing global fuel crisis, exacerbated by the war in the Middle East that began six weeks ago, highlighting vulnerabilities in supply chains.
Strategic Supply for Key Industries and Remote Communities
Ms Sanderson emphasized that the proposed reserves would be stored at existing facilities operated by fuel companies but would be entirely owned and managed by the state. This approach ensures that the government can direct fuel distribution to critical industries and remote communities as needed, independent of commercial contracts. "We are looking at securing additional supplies that would be entirely under the State's direction and control as a strategic supply – on top of the national reserves – that will be able to support key industry or remote communities as required," she stated.
The minister noted that discussions are still in early stages, with plans involving millions of litres of fuel. She drew parallels to the COVID-19 pandemic, which underscored the importance of self-sufficiency in a vast jurisdiction like WA. "We learned through COVID very quickly that we need to be self-sufficient, that we have the largest jurisdiction in the world and that it's complex to get, whether it is fuel or medical supplies, from A to B," Ms Sanderson explained.
Support from State Fuel Controller and Broader Context
State Fuel Controller Rob Cossart endorsed the move, highlighting how the Middle East conflict has exposed fuel security risks. "The war in the Middle East has highlighted just how important fuel security is, which is why we are looking closely at options to future-proof our supply," he said. He added that government-held reserves would enable rapid response during crises, maintaining economic stability and mobility in WA.
This state-level effort complements national measures, as the Federal Government has already released up to 20% of its emergency fuel stockpile to mitigate impacts from Iran's closure of the Strait of Hormuz. Additionally, agreements with companies like Ampol and Viva Energy are underwriting extra fuel purchases. Prime Minister Anthony Albanese recently secured a non-binding deal with Singapore to enhance fuel supplies, reflecting Australia's heavy reliance on imported refined fuel, which accounts for 90% of consumption.
Current Fuel Supply Status and Community Assurance
Federal Energy Minister Chris Bowen provided an update on national fuel levels, noting that Australia has 38 days of petrol, 31 days of diesel, and 28 days of jet fuel remaining. He reported that 57 tankers are en route with 4.1 billion litres of fuel, and while some service stations face shortages, the situation in WA is improving. Ms Sanderson reassured the public that supply chains are functioning, with multiple ships arriving, including from BP and Viva Energy. "My main message to the community is: supply continues. We want people to use what they normally use, no more, and no less," she concluded.
