Canberra: Australia has announced a comprehensive fuel security package valued at more than 10 billion Australian dollars (approximately $7.2 billion) amid ongoing global uncertainty. The initiative, set to be part of next week's federal budget, aims to create a government-owned fuel reserve of about one billion liters and expand onshore storage to guarantee at least 50 days of national fuel supply, as per an official statement from the Prime Minister's Office.

According to Anadolu Agency, the initiative is designed to protect critical sectors during potential disruptions. A significant portion of the plan includes 7.5 billion dollars allocated for a fuel and fertilizer security facility. Additionally, 3.2 billion dollars will be used to establish the national reserve, with a focus on diesel and aviation fuel.

The government intends to increase minimum stockholding requirements by approximately 10 days for all fuel types. This will be complemented by investments in storage infrastructure and feasibility studies aimed at enhancing refining capacity. Prime Minister Anthony Albanese emphasized that the package is crafted to shield Australians from global energy shocks and to ensure long-term supply stability.

"We're taking action to secure fuel now and into the future. By buying and storing more fuel, and finding ways to make more fuel here. This will protect Australians from future fuel shortages and help keep the country moving," Albanese communicated via the US social media platform X.

Further details are anticipated to be unveiled next week as part of the federal budget. Last month, Australia released fuel reserves to stabilize supply, acknowledging Canberra's heavy reliance on fuel imports and its increased vulnerability to disruptions, particularly in light of rising demand linked to the ongoing Middle East conflict.