The Victorian Transport Association (VTA) has welcomed the Commonwealth Government’s announcement of an Australian Fuel Security and Resilience package.
The peak Victorian transport body described the package as a significant step toward strengthening Australia’s fuel sovereignty and protecting critical freight and supply chains.
The package, to be detailed in Federal Budget that will be released on 12 May, includes measures to expand Australia’s onshore fuel reserves to at least 50 days, establish a permanent Government‑owned Australian Fuel Security Reserve, lift the Minimum Stockholding Obligation (MSO) across all fuel types, and invest in new and expanded domestic refining capability.
VTA Chief Executive Officer, Peter Anderson, said the announcement reflects many of the reforms the Association has consistently advocated for, particularly reducing Australia’s reliance on fuel imports.
“Freight keeps Australia moving, and fuel security underpins freight,” Anderson said.
“The VTA has long argued that Australia’s heavy dependence on imported refined fuel leaves our economy dangerously exposed to global shocks, whether from geopolitical conflict, shipping disruptions or price volatility. Today’s announcement is a strong step toward addressing that risk.”
The extension of fuel reserves to 50 days’ supply, including diesel and aviation fuel, will provide greater resilience for freight operators and essential services during supply disruptions.
Anderson said this was a critical improvement on Australia’s historically low stockholdings.
“Building sovereign fuel reserves is an economic and national security issue,” he said.
“For transport operators, continuity of supply is essential. This package recognises that reality.”
The VTA also welcomed the Government’s commitment to state and national investments in refining capability, including funding for feasibility studies into new or expanded fuel‑refining capacity, co‑funded with states and territories.
“We have consistently called for policy settings that retain and expand domestic refining, beyond simply keeping existing facilities operating,” Anderson said.
“Investment in refining capability is fundamental to energy sovereignty, price stability and supply chain resilience. We are encouraged to see this acknowledged and supported.”
Anderson said the VTA looks forward to engaging with the Commonwealth Government on the implementation details and ensuring the measures deliver practical benefits for the freight and logistics industry.
“Transport operators understand fuel risk better than anyone,” he said.
“We welcome the Government’s consultation commitment and stand ready to work constructively to ensure these reforms strengthen Australia’s fuel security for the long term.”
The Australian Fuel Security and Resilience package will deliver:
- $7.5 billion to increase the supply and storage of fuel and fertiliser by providing financial support including loans, equity, guarantees, insurance and price support.
- $3.2 billion to establish a government-owned fuel security reserve of around 1 billion litres to increase long term diesel and aviation fuel supply and storage, in combination with an increase to the Minimum Stockholding Obligation to increase Australia’s critical fuel reserves to 50 days. The government reserve will focus on regional stockouts and supply constraints for essential users.
- $10 million to support feasibility studies into new or expanded fuel refining capabilities, to be co-funded with the states.
In other news the ATA launches revived truck safety campaign.
