Have your say on the Australian Fuel Security and Resilience Package before 11.59pm AEST Tuesday 15 September 2026.
Global events are impacting fuel supply chains across the world. As part of the 2026-27 Budget, the Australian Government announced the Australian Fuel Security and Resilience Package (the Package) to enhance Australia’s resilience to fuel supply disruptions.
We are now consulting on 3 key measures in the Package:
- The $3.2 billion Australian Fuel Security Reserve (AFSR). The AFSR is a government-controlled 1 billion litre strategic fuel reserve that focuses on diesel and jet fuel.
- Increasing the Minimum Stockholding Obligation (MSO) held by industry by a further 10 days for diesel, petrol and jet fuel.
- Supporting our 2 domestic refineries to continue operating in the decade beyond 2030.
We are seeking feedback on:
- proposed design
- feasibility and implementation challenges
- benefits, costs and other impacts on industry, markets, and consumers.
Your feedback will help to inform:
- final policy settings
- legislative design and implementation pathways
- funding decisions.
Get the fuel facts
Australia has a robust fuel security approach. These measures will further strengthen our resilience to shock
The ASFR will enhance Australia’s fuel security by maintaining around 1 billion litres of government-controlled fuel stocks, primarily diesel and jet fuel. This will support national resilience.
The 3 fuel security measures will be designed to complement each other. Together with the MSO, the AFSR will contribute to a material uplift in national fuel stocks. This will increase the buffer available to respond to global shocks and supply constraints. Retaining our refining capabilities will provide further resilience.
The AFSR and MSO uplift build on the demonstrated experience and expertise of the Australian fuel industry
The Australian fuel industry delivers for Australia through diversity and flexibility in where we source fuel. The proposal is for a government owned strategic reserve that would sit alongside the commercial fuel market. Fuel companies would continue to import, store, distribute and sell fuel as they do today. The reserve would provide an additional layer of protection in the event of major disruptions.
The Australian Government is proposing to partner with industry to deliver the ASFR, drawing on the industry’s experience and global reach.
The AFSR is designed to provide an additional buffer when normal supply chains are under stress
This includes major international supply disruptions. We are consulting on how the Reserve operates, including:
- purchasing
- storing
- releasing fuel when needed.
The Reserve enhances the resilience of Australia’s fuel supply system
Reserves are a tool used by governments to mitigate disruptions. The Reserve will provide greater flexibility to respond to fuel supply and disruption challenges across Australia when they arise.
The MSO uplift bolsters fuel security, giving Australian households and businesses greater confidence that fuel supplies will be available when required
The MSO requires industry participants to hold minimum levels of fuel stocks in Australia. Increasing the obligation by a further 10 days for petrol, diesel and jet fuel will:
- strengthen fuel resilience
- ensure more fuel is available domestically during disruptions.
The MSO increase is for all fuel types
The additional 10-day increase would apply across petrol, diesel and jet fuel. The AFSR is proposed to focus primarily on diesel and jet fuel because of their critical role in:
- freight
- agriculture
- mining
- emergency services
- aviation.
The AFSR is proposed to focus on diesel and jet fuel
Diesel underpins much of Australia’s freight, agriculture, construction and mining activity, while jet fuel is essential for aviation connectivity. Strengthening reserves of these fuels helps protect critical services and economic activity during disruptions.
The Australian Government is committed to retaining our refinery capability
Domestic refining is critical to Australia’s fuel security and resilience. Domestic refining capacity provides:
- diversification
- operational flexibility
- the ability to process crude or other feedstocks into usable products.
Have Your Say
The 3 measures work together:
- the AFSR provides a strategic government reserve
- the higher MSO increases industry-held fuel stocks
- refinery support helps maintain domestic fuel production capability.
They are intended to strengthen Australia’s ability to withstand future fuel supply disruptions.
